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

Info icon This 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
Image of page 1

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern