PS4 - Intermediate Microeconomics, 2008 due: Wednesday /...

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Intermediate Microeconomics, 2008 Problem Set No 4 due: Wednesday / Thursday, Jan, 23 / 24 Problems A) Please, solve the following problems from the book. Question 32 is chal- lenging but you can use your results on Cobb Douglas Preferences quite a lot later: 1) 4) 6) 10) 16) 20) 32) B) Consider Jen, a consumer with preferences U(H,F)= F 1 3 H 2 3 , where H is the quantity of housing and F is the quantity of food (per month). Suppose Jen has a stipend of $600/month which she uses to purchase food at a price of $1/unit and housing at a price of $10/unit. total housing costs, thereby e±ectively lowering the price Jen pays for housing Cobb-Douglas Preferences) d. Suppose that her employer simply gave Jen the dollar cost you found
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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.

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PS4 - Intermediate Microeconomics, 2008 due: Wednesday /...

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