1.23 LecNotes

# 1.23 LecNotes - Admin Monday,January21,2008 5:54PM...

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

Should look at the sample exam on WebCT. Looks very much like his problems at the back of the lecture notes Either Office Hours or discussion section ± Let me know if you have questions about any topics that's troubling you First midterm on 2/8 Admin Monday, January 21, 2008 5:54 PM 0123 Page 2

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

View Full Document
PRACTICE PROBLEMS [1] Problem 1. Market Demand B d = quantity of ordinary (incandescent) light bulbs demanded per month P b = price of ordinary bulbs P f = price of efficient fluorescent bulbs P e = price of electricity Y = average household income L = number of hours of daylight per month Let B d = D(P b ,P f ,P e ,Y,L), where: We statistically estimate the demand function: B d = 1058 50P b + 30P f 10P e + 800Y 3L ± Definition: 1) Normal – if an increase in y increases the demand for X, then X is “normal.” 2) Inferior – if an increase in y decreases the demand for X, then X is “inferior.” Incandescent bulbs are {normal, inferior}. 1.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

1.23 LecNotes - Admin Monday,January21,2008 5:54PM...

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

View Full Document
Ask a homework question - tutors are online