The market for tickets to this year's Madison Brickyard 500 Grand Prix is characterized by the following supply and demand schedules: QD = 20,000 - 100P P: $/ticket QS = 10,000 + 100P Q: tickets Quantity supplied can respond to price because it's an outdoor venue, and the organizers can add bleachers if necessary

Bucky's roommate, Becky, informs him that her ideas might have worked better. She calculates the elasticity of demand at Bucky's "black market" equilibrium and notices that he has spoiled his own market somewhat. She calculates that he could have done much better by tossing a few of the tickets in the roaring living room fire! [Note: Becky knows that Bucky can only sell tickets for a single price!]

vi. By Becky's calculation, the point elasticity of demand at Bucky's black market equilibrium is ________.

a. -0.375 b. -0.143 c. -2.333 d. -0.429

vii. Bucky realizes Becky's brilliance by noting that his decision to corner the market on tickets makes him a monopolist with a _________ and thus __________ is equivalent to maximizing profit in this case.

a. Zero marginal cost ; maximizing total revenue

b. Zero marginal cost ; pricing at the unit elastic point on the market demand curve

c. Both (a) and (b) are true. d. Neither (a) nor (b) is true.

viii. Bucky should have tossed _________ tickets in the fire, sold the rest for _________ and realized a profit of _________.

a. 4000 ; $100 / ticket ; $440,000 b. 6000 ; $120 / ticket ; $960,000 c. 4000 ; $120 / ticket ; $720,000 d. 6000 ; $120 / ticket ; $320,000

ix. Bucky's plan would still work if he bought only those tickets he intended to sell under Becky's plan, rather than wasting money buying tickets he would ultimately through into the flames!!

a. True b. False

e. Finally (!), Brickyard Bob storms into the room and suggests an even more profitable idea. He notes that ticket scalpers at this event are always able to perfectly first degree price discriminate - namely charge EACH consumer his/her willingness to pay for tickets. x. If Bucky follows Brickyard Bob's advice, he __________ burn tickets and could realize a profit of __________. a. Would still ; $940,000 b. Would not ; $1,260,000 c. Would still ; $1,500,000 d. Would not ; $1,820,000

Please answer this question!

Thank you