1.23 LecNotes

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

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

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