PS 2 Fall 2017.docx - Economics 103 Professor Friedman Fall...

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Economics 103Your Name(s):__________________________________________Professor FriedmanYour TA:____________________________________________Fall 2017Your Section Time and Day:_____________________________Problem Set 2Due 4PM, November 6, 2017 Hand in hard copy to your TA’s mailbox, 1stfloor of Gordon Hall Do not submit answers on line through MoodleNote that there are two types of problems. You are encouraged to work with someone else in your TA section on the quantitative problems (1, 2, 3, 4); hand in one set of answers to this problems with both your names.Do the essay questions individually (5 and 6) and append separate answers with each person’s name for this along with your group answers to the quantitative questions. Type your answers; hand-written answers will be accepted only by special arrangement. Staple pages together. Be sure to keep a copy of your answers in case of problem.This problem set is so much easier to do using a computer spreadsheet that I am tempted to require it. Total 20 points.1.(3 points) Made the right way with fresh ingredients, Quiche Lorraineis delicious. Your friend Ella Marija Lani Yelich-O'Connor has abandoned her music career to open a bistro, whichspecializes in quiche and other French food, including macarons. She has done market research and finds that people value quiche dinnersaccording to the schedule given in Table 1. a.(1 points) Graph the demand curve for quiche.Does the demand curve have a positive or negative slope? Why?
0246810121416$0 $5 $10 $15 $20 Quiche DemandQuantity of QuicheAmount willing to pay ($)(1 point) How many servings will Ella sell at $14.58? How many at $7.25?

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