penn101_09s_hw2

penn101_09s_hw2 - Intermediate Microeconomics (Econ 101)...

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

View Full Document Right Arrow Icon

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

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

Unformatted text preview: Intermediate Microeconomics (Econ 101) Spring, 2009 Assignment 2 This assignment is due no later than Tuesday February 17 at the end of class. 1. Workouts 8.7, 8.9, 8.10, 9.15, 14.7, 15.5, 16.12 2. Additional Problems Question 1. If a consumer is endowed with 10 units of good 1 and 15 units of good 2, and her marginal rate of substitution is (in absolute value) 1 3 everywhere, which good will she buy and which good will she sell if good 2 is twice as expensive as good 1? Question 2. A consumer spends her total income, m , on goods x 1 and x 2 with prices p 1 and p 2 respectively. The price p 2 decreases and as a result the consumption of x 1 increases. Therefore: (1) x 1 is a normal good; (2) x 2 is an inferior good; (3) the consumption of x 2 may increase, but the total expenditure on x 2 does not change; (4) the price elasticity of x 2 is less than -1; For each statement, determine whether it is true or false. Justify your answer....
View Full Document

This note was uploaded on 09/27/2009 for the course ECON 101 taught by Professor Dannicatambay during the Spring '08 term at UPenn.

Page1 / 2

penn101_09s_hw2 - Intermediate Microeconomics (Econ 101)...

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