pset1_solutions

pset1_solutions - Books 30 5 10 Before speed reading course...

This preview shows pages 1–3. Sign up to view the full content.

Brief Solutions to Problem Set 1 1 2 Gasoline Other Goods 10 10 + (I-1)/3 Slope = -.1/10P, No black market Slope = -3/P with Black Market (I+29)/P I/P Sell gas on Black Market Buy gas on Black Market X 1 X 2 20 10 5 10 c a b d

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

View Full Document
3. 4. Books 50 40 10 20 25 26.67 Endowment of (20,10) Price of CD=10, Price of Book = 20 Price of CD=10, Price of Book = 15
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Books 30 5 10 Before speed reading course After speed reading course TV Shows CDs 5. 6. Housing I/P2 600/P1 3I/2P1 (600+I)/P1 (b) slope=P1/P2 (a) slope = 3P1/2P2 (c) a single point at (800/P1,I /P2) Phone Calls (I-40)/P (I-60)/P 1000 2000 Option 2 Option 1 Other Goods Other Goods...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

pset1_solutions - Books 30 5 10 Before speed reading course...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online