PS2 Work together - Economics 103 Professor Friedman Fall...

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Economics 103Your Name(s):_Nick Scenna and Gustavo Torres ____________Professor FriedmanYour TA:__Eric Hoyt _________________________________Fall 2014Your Section Time and Day:__Thursday @ 4:00_____________Problem Set 2Due Date: October 29Hand in hard copy to your TA’s mailbox, 8thfloor of Thompson Hall Do not submit answers on line through MoodleNote that there are two types of problems. You are encouraged to work with someone else in your TA section on the quantitative problems (1, 2, 3, 4); hand in one set of answers to this problems with both your names.Do the essay question individually (5) and append separate answers with each person’s name for this along with your group answers to the quantitative questions. Type your answers; staple pages together.This problem set is much easier to do using a computer spreadsheet. Total 20 points.1.(4 points) Carrot Cake is the best of all possible deserts. Your friend Taylor has left school to open a bakery, which specializes in carrot cake and Thai food. She has done some market research and finds that your neighbors value slices of carrot cake according to the following schedule: SlicesMU Carrot Cake slices1$36.00 2$32.40 3$29.16 4$26.24 5$23.62 6$21.26 7$19.13 8$17.22 9$15.50 10$13.95 11$12.55 12$11.30 13$10.17 14$9.15 a.(2 points) Graph the demand curve for carrot cake. Does the demand curve have
a positive or negative slope? Why?1234567891011121314$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.00Demand

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