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.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Summer '08
 cunningham
 Supply And Demand, long run equilibrium, Billy, market equilibrium price, Short Run Supply

Click to edit the document details