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econ212quiz1 - the quantities of each good consumed 4 Now...

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Econ 212 Quiz # 1 30 minutes 1. Math Questions: Find the first and second derivatives of f(x) with respect to x. α x x x f + = 3 7 ) ( x e x f = ) ( Next let 4 2 ) ( + = x x f x x g ln ) ( = Find the derivative of ) ( ) ( ) ( x g x f x h = )) ( ( ) ( x g f x z =
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2. Suppose that the demand curve for apartments is p p D 2 100 ) ( - = . What price would the monopolist set if he had 70 apartments? How many would he rent? What price would he set if he had 20 apartments? How many would he rent?
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3. Brenda likes hot dogs and Coca-Cola. Hot dogs cost $1 each and Cokes cost $.50 per bottle. Brenda has $40 to spend on hot dogs and Coke. Write down her budget equation. How many hot dogs can Brenda buy if she spends all her money on hot dogs? How many cokes can Brenda buy if she spends all her money on cokes? Draw her budget line with Coke on the horizontal axis and hot dogs on the vertical axis. Find the points where the budget line hits the axes and write down
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Unformatted text preview: the quantities of each good consumed. 4. Now consider the following situation: Brenda’s income doubled, the price of hot dog doubled, and the price of coke stayed the same. Write down her new budget equation. Draw another budget line, and label the points where the budget line hits the axes and write down the quantities of each good consumed. 5. Bonus Question: Now let’s go back to the situation in 3. In addition, Coke offers a special discount of $.20 per bottle after the first 12 bottles of Coke. For example, if Brenda buys 20 bottles of coke, she will need to pay $.50*12+($.50-$.20)*7. Draw another budget line, and label the points where the budget line hits the axes and the point where it has a kink. Write down the quantities of each good consumed at all these points....
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