2006 이인호교수 미시경제학 중간 midterm(2006).pdf

# 2006 이인호교수 미시경제학 중간 midterm(2006).pdf

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212.201 Microeconomics 2006 In Ho Lee Mid-Term Examination 1. An individual was maximizing her utility subject to her budget constraint. Then prices changed, but her income stayed °xed. After the price change, she chose a new bundle, and she found herself better off. Therefore the new bundle costs more at the old prices than the old bundle did. Discuss whether the argument is correct. 2. Someone who has taken microeconomic theory says to you, ±I don’t see the big deal about Giffen goods - -they are everywhere. Take the price of vacation package, for example. Practically every summer, the price of vacation package increases and people buy more of it. Looks to me like a Giffen good.² Discuss whether the argument makes economic sense. 3. Jane has the following utility function: u ( x; y ) = min f x; y g . She has the income of \$ 100 to spend on x and y . The price of x is \$ 1 and the price of y is \$ 2. (a) Solve the utility maximization problem: how many units of x and y does she buy?

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• Fall '16
• Hyun Hye Jung

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