EXHIBIT 1 The Impact of a Decrease in Price on Total Revenue 5 EXHIBIT 1 The Impact of a Decrease in Price on Total Revenue ( a ) E l a s t i c d e m a n d ( E d > 1 ) ( b ) I n e l a s t i c d e m a n d ( E d < 1 ) ( c ) U n i t a r y e l a s t i c d e m a n d ( E d = 1 ) D e m a n d c u r v D e m a n d c u r v 4 4 4 A D e m a n d c u r v E P r i c e 3 P r i c e C 3 P r i c e 3 p e r p e r p e r t i c k e t B 2 t i c k e t D F 2 t i c k e t 2 ( d o l l a r s ) ( d o l l a r s ) ( d o l l a r s ) 1 1 1 1 2 3 4 1 2 3 4 1 2 3 4 Q u a n t i t y o f t i c k e t s p e r c o n c e r t Q u a n t i t y o f t i c k e t s p e r c o n c e r t Q u a n t i t y o f t i c k e t s p e r c o n c e r t ( t h o u s a n d s ) ( t h o u s a n d s ) ( t h o u s a n d 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 C A U S A T I O N C H A I N I n c r e a s e D e c r e a s e N o c h a n g e P r i c e P r i c e P r i c e i n t o t a l i n t o t a l i n t o t a l d e c r e a s e d e c r e a s e d e c r e a s e r e v e n u e r e v e n u e r e v e n u e G a i n L o s U c h g e d

EXHIBIT 2 Perfectly Elastic and Perfectly Inelastic Demand 5 EXHIBIT 2 Perfectly Elastic and Perfectly Inelastic Demand (  ( a ) P e r f e c t l y e l a s t i c d e m a n d E = ) d ( b ) P e r f e c t l y i n e l a s t i c d e m a n d ( E = ) d D e m a n d 4 4 P r i c e 3 P r i c e 3 p e r p e r t i c k e t D e m a n d t i c k e t ( d o l l a r s ) 2 ( d o l l a r s ) 2 1 1 1 2 3 4 1 2 3 4 Q u a n t i t y o f t i c k e t s p e r c o n c e r t Q u a n t i t y o f t i c k e t s p e r c o n c e r t ( t h o u s a n d s ) ( t h o u s a n d 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 I n f i n i t e Z e r o c h a n g e P r i c e c h a n g e P r i c e i n q u a n t i t y c h a n g e i n q u a n t i t y c h a n g e d e m a n d e d d e m a n d e d

EXHIBIT 3 Price Elasticity of Demand Terminology 5 EXHIBIT 3 Price Elasticity of Demand Terminology P P D P D D Q Q Q Elastic Inelastic Unitary elastic P P D D Q Q Perfectly elastic Perfectly inelastic

5 EXHIBIT 4 The Variation in Elasticity and Total Revenue Along a Hypothetical Demand Curve ( a ) P r i c e e l a s t i c i t y o f d e m a n d r a n g e s 4 5 C a l c u l a t i o n o f T o t a l R e v e n u e a n d E l a s t i c i t y 4 D e m a n d T R E l a s t i c ( d > 1 ) A l o n g a H y p o t h e t i c a l D e m a n d C u r v e 3 5 P r i c e 3 T o t a l p e r U n i t a r y e l s c ( E d = 1 ) r e v e n u e t i c k e t 2 5 ( t h o u s a n d s E l a s t i c i t y ( d o l l a r s ) 2 I n e l a s t i c ( E d < 1 ) P r i c e Q u a n t i t y o f d o l l a r s ) c o e f f i c i e n t ( E ) D e m a n d 1 5 d 1 $ 4 3 5 2 1 7 . 9 8 E l a s t i c U n r y e I 5 5 1 1 5 2 2 5 3 3 5 4 Q u a n t i t y o f t i c k e t s p e r c o n c e r t ( t h o u s a n d s ) ( b ) T o t a l r e v e n u e c u r v e U n i t a r y e l s c ( E d = 1 ) 4 5 E l a s t i c ( d > 1 ) 4 3 5 I n e l a s t i c ( E d < 1 ) T o t a l 3 r e v e n u e 2 5 ( t h o u s a n d s 2 o f d o l l a r s ) 1 5 1 5 5 1 1 5 2 2 5 3 3 5 4 Q u a n t i t y o f t i c k e t s p e r c o n c e r t ( t h o u s a n d s )

EXHIBIT 8 Price Elasticity of Supply 5 EXHIBIT 8 Price Elasticity of Supply ( a ) P e r f e c t l y e l a s t i c ( b ) P e r f e c t l y i n e l a s t i c ( c ) U n i t e l a s t i c P Q S S E s =  Q 2 P E s = 1 E s = 1 % P r i c e P S P r i c e P r i c e Q 1 P 1 % Q Q u a n t i t y s u p p l i e d Q u a n t i t y s u p p l i e d Q u a n t i t y s u p p l i e d

EXHIBIT 10 The Tax Incidence of a Tax on Gasoline 5 EXHIBIT 10 The Tax Incidence of a Tax on Gasoline ( a ) T a x p a r t i a l l y s h i f t e d t o b u y e r s ( b ) T a x f u l l y s h i f t e d t o b u y e r s D S 2 A f t e r a x A f t e r a x S 2 D 2 . 2 . B e f o r t a x S 1 S B e f o r t a x 1 1 . 7 5 1 . 7 5 E 2 P r i c e 1 . 5 E 2 P r i c e 1 . 5 p e r p e r 1 . 2 5 1 . 2 5 g a l l o n g a l l o n ( d o l l a r s ) 1 . E 1 ( d o l l a r s ) 1 . E 1 . 7 5 T . 7 5 . 5 . 5 . 2 5 . 2 5 5 1 1 5 2 2 5 3 3 5 4 4 5 5 5 1 1 5 2 2 5 3 3 5 4 4 5 5 Q u a n t i t y o f g a s o l i n e Q u a n t i t y o f g a s o l i n e ( m i l l i o n s o f g a l l o n s p e r d a y ) ( m i l l i o n s o f g a l l o n s p e r d a y ) P a i d b y c o n s u m e r s P a i d b y c o n s u m e r s P a i d b y s e l l e r s C A U S A T I O N C H A I N C A U S T I O N H n c r e a s i g o l t x D u p y m b f d C o n s u m e r s I n c r e a s e D e c r e a s e a n d s u p p l i e r s i n g a s o l i n e i n s u p p l y s h a r e b u r d e n t a x o f t a x