2004년 이인호 미시경제학 중간midterm_201.pdf

# 2004년 이인호 미시경제학 중간midterm_201.pdf -...

• Test Prep
• 2

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

212.201 Microeconomics 2004 In Ho Lee Mid-Term Examination October 20, 2004 1. (25 points) Mr. and Mrs. Brauer owned their own home. There was a real estate boom in their town and the price of houses doubled. Their income and other prices stayed constant. The Brauer’s complained that ”we are being driven from our home; we can’t afford to live here any more.” (a) Draw a diagram that illustrates what happened to the Brauer’s budget constraint. (b) Could they have been made worse off by the change? Could they have been made better off? Explain why. 2. (25 points) May’s utility function is U = C + 14 D 1 / 2 - . 5( H + J ) 2 , where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job. All May’s income comes from her job. She can work as many hours a day as she wishes at a wage of \$7 an hour.

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

This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern