1. What does the concept of elasticity mean to an economist?
2. What is the formula for:
    the price elasticity of demand,
    the income elasticity of demand,
    the cross price elasticity of demand,
    and the price elasticity of supply?
3. If a price elasticity of demand coefficient is greater than one, what does that mean?
4. If a price elasticity of demand coefficient is less than one, what does that mean?
5. What is the relationship between the price elasticity of demand and total revenue?  Explain in words.
6. Draw a demand curve with a range of prices where the price elasticity of demand is perfectly inelastic.
7. What is an example of a good that would have a demand curve like the curve drawn in question #6?  Explain why?
8. Explain a business application for each of the four types of elasticities we discussed in class.
9. What is consumer surplus or benefit?
10. What is producer surplus or benefit?
11. Graph consumer and producer surplus.
12. Explain the process by which producers and consumers attempt to “capture” more consumer and producer surplus respectively.
13. How do markets control quality?
14. How do illegal markets enforce contracts?
15. What are some of the unintended consequences of illegal markets (according to economists)?
16. Explain the effects of an excise tax – both graphically and in words.
17. What determines who pays the tax?
18. Why do politicians want excise taxes on inelastic goods?
19. What is the difference between an income tax and a sales tax?
20. Explain the differences between the two different definitions of competition we discussed in class.
21. What does it mean to say that competition can be viewed as a “discovery procedure or process”?
22. How do the two views of competition differ with respect to barriers to entry?
23. Can a monopoly be competitive?  Explain.
24. How are antitrust laws viewed under the two views of competition?
25. Why might antitrust laws actually be considered to be anti competitive?
26. What is a cartel?
27. Why are cartels not successful almost all of the time?
28. What characteristics of a market would be MORE conducive to forming a successful cartel?
29. Using a pay-off matrix, explain why cartels break down.
30.  What is the theory of "natural monopoly" and which view of competition agrees with it and which does not (and why)?