PS2 - Intermediate Microeconomics 2008 Problem Set No 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Intermediate Microeconomics, 2008 Problem Set No 2 Problems Note: Explanations can be short and one or two sentences are enough. 1) Question 15, Chapter 2 (challenging) 2) Question 18, Chapter 2 3) Question 32, Chapter 2 4) Question 38, Chapter 2 5) Name two markets in which you would expect the market clearing as- sumption to make good predictions. Name four markets in which you would expect the assumption to be not so good and explain why. 6) "During a mild winter, the price of home heating oil is expected to be less than it would be during a normal winter. " Please answer "True" or "False" and explain why. 7) Explain why the shape of the demand curve will determine the how a shock to the market equilibrium a/ect price and quantity. 8) Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good. The price of a substitute good increases and the price of an input to production also increases. Graph the original demand and supply curves, and the curves after the substitute good and input
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/18/2008 for the course ECON 401 taught by Professor Kuhn during the Winter '08 term at University of Michigan.

Page1 / 3

PS2 - Intermediate Microeconomics 2008 Problem Set No 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online