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1. Los Angeles is committed to raising $1 billion for a new stadium. It is considering a $1 surtax on all cab rides because most cab rides are by non-residents. Use supply and demand to evaluate the wisdom of such a tax. 2. Tokyo has won the right to host the 2020 Summer Olympics, but it might have made itself worse off by doing so. Use the appropriate model to explain why this is so. 3. A recent economic study found that the difference in prize money between the winners of downhill ski races and second-place finishers is much less than the difference in professional golf tournaments. Use an appropriate model to explain why this is the case.
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