Econ103-Assign 1

Econ103-Assign 1 - Summer 2009 Principles of Microeconomics(Econ 103 Assignment 1(Your explanation will carry all the marks Date Due on(Please hand

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

View Full Document Right Arrow Icon
Summer 2009 Date: May 20, 2009 Principles of Microeconomics (Econ 103) Assignment # 1 (Your explanation will carry all the marks) Due on May 27, 2009 (Please hand in your assignments during the lecture on Wednesday) Q.1 What do we mean my maximization? Why do we want to maximize? (10 points) We can to get much utility as we can. Everybody are greed, we want to get more than we can get while many things are limited to have. Q.2 I know what my income is and what the prices of goods that I buy are. Do I still need to know the concept of relative prices and real income? (10 points) Sometimes the nominal income change, the prices of goods will change too. Using real income and relative prices is a way to measure purchasing power in terms of goods and services. Q.3 Why do two people trade? (5 points) When two people have different marginal values on goods, they will trade. Q.4 Why demand curve always slopes downward? (10 points) The more goods people have, they are willing to sacrifice and to pay will
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/19/2009 for the course ECON 103 taught by Professor Hanafiahharvey during the Summer '08 term at Simon Fraser.

Page1 / 2

Econ103-Assign 1 - Summer 2009 Principles of Microeconomics(Econ 103 Assignment 1(Your explanation will carry all the marks Date Due on(Please hand

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online