1
Department of Economics, HKUST
ECON 198
MICROECONOMIC THEORY I
Semester: Spring 2009
Prof. S. F. Leung
Lecture time: Mon & Wed 10:30am  11:50am
Email: [email protected]
Teaching assistant: Peter TSUI (Email: [email protected], Office: 2393)
Tutorial hour: Fri 5:00pm5:50pm
Tutorial room: 2502
Homework #3
Due in class on Wednesday, April 22, 2009
1.
Snyder and Nicholson, p. 226, Problem 7.3
2.
Use economic theory to predict whether the price elasticity of demand for DVD players is
higher than that for CD players. Explain.
3.
A movie theater manager is considering changing the way he prices tickets. Suppose the
current price of a ticket is $35. He hired an economics consulting firm to estimate the
demand for tickets. The firm classified movie goers into two groups (general public and
students) and obtained the demand curves for the general public (
Q
gp
) and students (
Q
s
)
as follows:
Q
gp
= 500 – 5P
Q
s
= 200 – 4P
(a)
What is the quantity demanded by each group?
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 Fall '09
 LeungSiuFai
 Economics, Microeconomics, Supply And Demand, general public

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