Problem_Set_3

# Problem_Set_3 - Problem Set 3 EEP162-Spring 2007 Due in...

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Q P 100 4.96 101 5.1 102 5.05 103 4.95 104 4.81 105 4.86 106 4.84 107 4.87 108 4.81 109 4.81 110 4.77 Problem Set 3 EEP162-Spring 2007 Due in Lecture Friday April, 4th 1. Suppose San Francisco has submitted a proposal to build a new bridge to the North Bay. You are advising a City Council member and a member of the state legislature about the impacts of the proposed bridge on (i) taxpayers/consumers and (ii) businesses in both (A) the San Francisco Bay area and (B) California in general. What kind of analysis would you conduct? What kind of impacts would you expect for each group? Think about all the linkages. 2. Write down the form of the linear, double-log and Stone-Geary demand functions. Discuss briefly the advantages and disadvantages of each utility function. 3. You are the head of a water agency and collected the following information about observed quantity-price pairs for water consumption of a single household (quantities are in cubic feet, prices are in dollars per cubic feet.) Estimate a linear and a double-log demand function from the above data. If a

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## This note was uploaded on 08/01/2008 for the course ECON 162 taught by Professor Hanemann during the Spring '07 term at Berkeley.

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Problem_Set_3 - Problem Set 3 EEP162-Spring 2007 Due in...

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