Spring07MT2ANS[1]

Spring07MT2ANS[1] - 1 Econ 003 Second Midterm Exam Answer all questions in one hour This question paper has five pages FULL NAME STUDENT ID SECTION

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Econ 003: Second Midterm Exam. Answer all questions in one hour. This question paper has five pages. FULL NAME: ____________________________________________________ STUDENT ID: ____________________________________________________ SECTION: _______________________________________________________ TA’s NAME: _____________________________________________________ 1. The diagrams that are drawn in figure1 (in panel A and panel B) show changes in a consumer’s budget constraint. His initial budget line and indifference curve are drawn as thin lines but new budget line and indifference curve are drawn as dark 1
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lines. In panel A the consumer moves from M to N and in panel B he moves from m to n. Answer the following questions by filling in the blanks. (a) In panel A, initially the consumer bought ____ 4 ______units of apples and ______ 4 _____ units of bananas. (1 point) (b) In panel A the consumers will buy ____ 6 _______units of apples and ___ 6 _____units of bananas when his budget constraint changes. (1 point) (c) In panel A this change in the consumer’s decision is caused by a change in _____ income _____________________. (1 point) (d) In panel B, initially the consumer bought ____ 9 ____units of apples and ______ 4 _____ units of bananas. (1 point) (e) In panel B the consumers will buy ____ 3 _______units of apples and
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This note was uploaded on 04/17/2008 for the course ECON 003 taught by Professor Das during the Spring '08 term at UC Riverside.

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Spring07MT2ANS[1] - 1 Econ 003 Second Midterm Exam Answer all questions in one hour This question paper has five pages FULL NAME STUDENT ID SECTION

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