: Suppose you manage a baseball stadium. To pay the salary for a star player, you would like to increase the total revenue from ticket sales. Should you increase or decrease the price of a ticket to increase revenue? Explain. Q10. Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. Suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service decreases to 11,000. Suppose also that when the average income increases to $60,000, the quantity demanded of mobile service increases to 33,000. a. Consider the income elasticity, what type of good is mobile telephone service? b. Using the midpoint method, what is the income elasticity of demand for mobile service? C. Consider the cross price elasticity of demand for mobile and landline telephone service, is the cross price elasticity of demand positive or negative and do the consumers of Plainville regard these goods as substitutes or complements? Q11. Using a supply and demand diagram, show a labor market with a binding minimum wage. Use the diagram to show those who are helped by the minimum wage and those who are hurt by the minimum wage. Q12. How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams. Q13. Suppose that demand in the market for good X is given by the equation QD=30-P, and that supply in the market for good X is given by the equation QS=2P. a. What are the equilibrium price and quantity in the market for good X? b. If the government set a price ceiling at $8, would there be a shortage or surplus, and how large would be the shortage/surplus? C. If the government set a price ceiling at $12, would there be a shortage or surplus, and how large would be the shortage/surplus?