03 Jun Question 1. Los Angeles is committed to rai
Question
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.
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