Review1Prelim2March06 - Talia Bar Econ313-1 Review Prelim 2...

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Talia Bar Econ313-1 Review Prelim 2 Solve questions 1 and 2 in one blue book. Use a separate blue book to solve questions 3 and 4. You have about 65 minutes for this exam. There are 100 points in all. Allocate your time wisely (you may want to use about 6 minutes per 10 points). The questions are not ordered by di culty or length. There may be a few di f erent versions of the exam so do not worry if you talk to your friends after the exam and f nd that you have di f erent answers. When time is up, you must stop writing immediately. Question 1 (Consumer theory) (30) There are 2 consumers, Adam and Eve. They consume 2 goods x and y . Each consumer has a budget set p x x + p y y = m. Where p x ,p y ,m> 0 . Adam’s utility function is given by: u ( x, y )=min( x, y ) . Eve’s utility function is given by: u ( x, y )= x + y. a. Find Adam’s demand for x . b. Find Eve’s demand for x . c. For Adam, is x a normal good? Is it inferior? Is it Gi f en? Is it Ordinary?
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This test prep was uploaded on 02/23/2008 for the course ECON 3130 taught by Professor Masson during the Spring '06 term at Cornell University (Engineering School).

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Review1Prelim2March06 - Talia Bar Econ313-1 Review Prelim 2...

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