Kyle and Elena Smith contributed to the support of their two children, Alexandra and Matthew, and Elena’s divorced father, Nick. For 2017, Alexandra, a 22-year-old full-time college student, earned $17,000 from a part-time job. Matthew, a 27-year-old full-time graduate student, earned $2,300 from his job as a teaching assistant. Nick received $12,000 in capital gains municipal bond interest income and $7,000 in nontaxable social security benefits. Alexandra, Matthew, and Nick are U. S. citizens and were over one-half supported by Kyle and Elena. How many exemptions can Kyle and Elena claim on their 2017 joint income tax return?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?