Econ100a_PSET1

# Econ100a_PSET1 - Econ 100A - Problem Set 1 I. Math Review...

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Econ 100A - Problem Set 1 I. Math Review 1. . What is the expression for 2/3 5 + 7 yx x = 2 + dy dx ? 2. y = zx 3/4 + z ln d. What is the expression for y x ? 3. What is the expression for 7l n () . ykx = y x ? 4. , dy x E dx y =⋅ . Let y= 2 x 2 . What is the expression for E y,x ? II. Preferences and Utility 5. Fred likes apples. He doesn’t really care how many bananas he consumes (they add nothing to his utility.) Draw his indifference curves. 6. I need a minimum of 7 apples/week to make one apple pie per week. I don’t like to eat apples unless they are in a pie. (They’ll just sit on the shelf and get rotten in a week if I get less than 7.) I do, however, like bananas, even if they are not in a pie. Draw my indifference curves. 7. My preferences are monotonic. a. Do I prefer 3 apples to 2 bananas? Why or why not? b. Write down a monotonic utility function in apples and bananas. c. Write down a utility function showing I prefer 2 apples to 3 bananas.

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## This note was uploaded on 04/10/2008 for the course ECON 100A taught by Professor Babcock during the Spring '07 term at UCSB.

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Econ100a_PSET1 - Econ 100A - Problem Set 1 I. Math Review...

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