EXHIBIT 1 The Effects of Shifts in Demand on Market Equilibrium 4 EXHIBIT 1 The Effects of Shifts in Demand on Market Equilibrium ( a ) I n c r e a s e i n d e m a n d ( b ) D e c r e a s e i n d e m a n d S S u r p l s o f 2 , g a z e D 1 D 2 S 1 , 2 4 D 1 E 2 D 2 P r i c e p e r E 1 P r i c e p e r 9 g a s 3 c r u i s e E 1 g u z z l e r E 2 ( d o l l a r s ) 6 ( t h o u s a n d s 2 o f d o l l a r s ) S h o r t a g e f 8 , c u i s 3 1 4 8 1 2 1 6 2 1 2 3 4 5 Q u a n t i t y o f C a r i b b e a n c r u i s e s Q u a n t i t y o f g a s g u z z l e r s ( t h o u s a n d s p e r y e a r ) ( t h o u s a n d s p e r m o n t h ) C A U S A T I O N C H A I N C A U S A T I O N C H A I N I n c r e a s e i n I n c r e a s e i n D e c r e a s e i n D e c r e a s e i n I n c r e a s e D e c r e a s e e q u i l i b r i u m q u a n t i t y e q u i l i b r i u m q u a n t i t y i n d e m a n d i n d e m a n d p r i c e s u p p l i e d p r i c e s u p p l i e d

EXHIBIT 2 The Effects of Shifts in Supply on Market Equilibrium 4 EXHIBIT 2 The Effects of Shifts in Supply on Market Equilibrium ( a ) I n c r e a s e i n s u p p l y ( b ) D e c r e a s e i n s u p p l y S u r p l s o f 4 m i n e t a v d S 1 S 2 S 2 D S 1 4 . 8 D E 1 E 2 P r i c e p e r 3 . P r i c e p e r 6 S h o r t a g e f 4 b i l n d 1 , v i d e o E 2 E 1 b o a r d f e e t r e n t a l 2 . ( d o l l a r s ) 4 ( d o l l a r s ) 1 . 2 2 4 6 8 1 2 4 6 8 1 Q u a n t i t y o f v i d e o r e n t a l s Q u a n t i t y o f l u m b e r ( m i l l i o n s p e r m o n t h ) ( b i l l i o n s o f b o a r d f e e t p e r y e a r ) C A U S A T I O N C H A I N C A U S A T I O N C H A I N D e c r a s i n q u l b m p I n c r e a s i q u t y d m I n c r e a s e i n D e c r e a s e i n I n c r e a s e D e c r e a s e e q u i l i b r i u m q u a n t i t y i n s u p p l y i n s u p p l y p r i c e d e m a n d e d

EXHIBIT 4 Rent Control Results in a Shortage of Rental Units D 8 8 E E 6 6 M o n t h l y r e n t S h o r t a g e f 4 m i l n u s p e r u n i t R e n t c i l g ( d o l l a r s ) 4 4 2 2 2 2 4 4 6 6 8 8 1 1 Q u a n t i t y o f r e n t a l u n i t s ( m i l l i o n s p e r m o n t h ) C A U S A T I O N C H A I N Q u a n t i y d e m x c s q p l R e n t c i l g S h o r t a g e

EXHIBIT 5 A Minimum Wage Results in a Surplus of Labor 4 EXHIBIT 5 A Minimum Wage Results in a Surplus of Labor S u p l y o f w r k e s D e m a n d f o r w k s U n e m p l o y t W a g e W m m M i n u w a g e r a t e ( d o l l a r s E p e r W e h o u r ) Q Q Q d e s Q u a n t i t y o f u n s k i l l e d l a b o r ( t h o u s a n d s o f w o r k e r s p e r y e a r ) C A U S A T I O N C H A I N M i n i m u m U n e m p l o y m e n t w a g e

EXHIBIT 6 Rigging the PC Market 4 EXHIBIT 6 Rigging the PC Market D S 2 R e s t r i c d u p l y 3 , I n e f i c t q u l b r m 2 , 5 S 1 C o m p e t i v s u l y P r i c e p e r 2 , E 2 p e r s o n a l E 1 c o m p u t e r 1 , 5 ( d o l l a r s ) E f i c e n t q u l b r m 1 , 5 5 1 1 5 2 2 5 3 Q u a n t i t y o f p e r s o n a l c o m p u t e r s ( t h o u s a n d s p e r m o n t h )

EXHIBIT 7 Externalities in the Steel and AIDS Vaccination Markets 4 EXHIBIT 7 Externalities in the Steel and AIDS Vaccination Markets ( a ) E x t e r n a l c o s t s o f p o l l u t i o n ( b ) E x t e r n a l b e n e f i t s o f A I D S v a c c i n a t i o n S 2 I n c l u d e s x t r a o f p i E f i c e n t q u l b r m S E x c l u d e s v a i n t o b f D 1 I n c l u d e s v a i t o b f D 2 D E f i c e n t q u l b r m E 2 S 1 E x c l u d e s t r n a o f p i P P r i c e o f P r i c e p e r 2 s t e e l p e r E 2 v a c c i n a t i o n E 1 t o n P ( d o l l a r s ) P 2 1 ( d o l l a r s ) E 1 I n e f i c t q u l b r m I n e f i c t q u l b r m P 1 Q Q Q Q 2 1 1 2 Q u a n t i t y o f s t e e l Q u a n t i t y ( t o n s p e r y e a r ) ( n u m b e r o f A I D S v a c c i n a t i o n s ) C A U S A T I O N C H A I N C A U S A T I O N C H A I N E x t e r n a l c o s I n e f i c t q u l b r m E x t e r n a l b f i s I n e f i c t q u l b r m

EXHIBIT 8 Why the Higher Price for Lower Cholesterol? 4 EXHIBIT 8 Why the Higher Price for Lower Cholesterol? S 1 D 2 S 2 D 1 P 2 P r i c e P 1 p e r p o u n d Q u a n t i t y o f o a t b r a n

EXHIBIT 9 Is There Price Fixing at the Ticket Window? 4 EXHIBIT 9 Is There Price Fixing at the Ticket Window? S D S c a l p e r i P r i c e p e r t i c k e t O f i c a l p r e Q u a n t i t y o f t i c k e t s

EXHIBIT A-1 The Impact of Insurance on the Health Care Market 4 EXHIBIT A-1 The Impact of Insurance on the Health Care Market S C D H e a l t h c r p o v i d s P 3 P 3 A I n s u r e p a y d i f c ( P 3 – 2 ) P 1 P r i c e p e r u n i t ( d o l l a r s ) B P P a t i e n s p y 2 2 Q Q 1 2 Q u a n t i t y o f h e a l t h c a r e ( u n i t s p e r t i m e p e r i o d )