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# practice - Practice Final Exam Econ 11 Summer Session C...

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Practice Final Exam Econ 11 °Summer Session C 2008 University of California, Los Angeles The exam will be worth 100 points, 20 points per question. There are no calculators or outside information permitted. 1. Suppose the demand for student basketball tickets for UCLA games is given by Q = 8000 ° 40 P . (a) If the price UCLA charges for a student ticket is 10 dollars, what is the price elasticity of demand for tickets? (b) Suppose there is a secondary market on Craig±s List, which resells tickets according to the function Q = 40 P ° 80 . Calculate the market equilibrium price and the quantity of tickets sold. (c) What is the total consumer surplus at this price? What is the total producer surplus? (d) Suggest a method for the college to gain some of this surplus. Sketch your solution in a graph of the market. 2. Consider two individuals A and B with the following utility functions for goods x and y . U A ( x; y ) = x 2 y U B ( x; y ) = xy (a) True or false: if both individuals have identical endowments, there would be no bene²t to trade.

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practice - Practice Final Exam Econ 11 Summer Session C...

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