100A Final Exam SP09 Eleven

100A Final Exam SP09 Eleven - Econ 100A: Microeconomics,...

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Econ 100A: Microeconomics, Spring 2009, Dr. Famulari Final Exam Version A: 500 points total Name_______________________________________ PID__________________ Question # Points 1 /140 2 /45 3 /50 4 /50 5 /45 6 /60 7 /60 8 /50 Total /500 STUDENT CONSENT FOR RELEASE OF STUDENT INFORMATION (Buckley Waiver) I hereby authorize the UCSD Economics Department to return my graded final examination/research paper by placing it in a location accessible to all students in the course. I understand that the return of my examination/research paper as described above may result in disclosure of personally identifiable information, that is not public information as defined in UCSD PPM 160-2, and I hereby consent to the disclosure of such information. Quarter: Spring 2009 Course: 100A Intermediate Microeconomics Date: 5/9/10 Instructor Melissa Famulari Student ID# Print Name Signature
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Question 1 (140 points total): Toni gets utility from X and Y and her utility function is U(X,Y)= X 1-α Y α where 1> α >0. A. (10 points) Toni maximizes her utility subject to her budget constraint. What is the Lagrangian for Toni’s utility maximization problem ? B. (20 points) Write down the first order conditions and solve for the ordinary demand functions X * ( x p , y p , I) and Y * ( x p , y p , I)
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C. (10 points) Toni minimizes her expenditures to achieve utility level U . What is the Lagrangian for Toni’s expenditure minimization problem ? D. (20 points) Write down the first order conditions and solve for the compensated demand functions X C ( x p , y p , U ) and Y C ( x p , y p , U ) E. (20 points) Provide a verbal definition of an inferior good. Does Toni consider Y to be an inferior good? Take the appropriate derivative to prove your answer.
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F. (20 points) Provide a verbal definition of net substitutes. Does Toni consider X and Y to be net substitutes? Take the appropriate derivative to prove your answer.
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100A Final Exam SP09 Eleven - Econ 100A: Microeconomics,...

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