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

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

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