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Econ 201  Microeconomics
Name:
Quiz 2  26 Nov 2008
Student No:
Assist. Prof. Efe Postalcı
Answer the following 6 questions. You have
45
minutes.
1. Emily’s
utility
function
is
U
(
x, y
)
=
3
min
{
x, y
}
+
y
.
If we draw her indiffer
ence curves with x on the horizontal axis
and y on the vertical axis, these indifference
curves are
(a) made up of two line segments that meet
where x = 4y. One of these line segments
is vertical and the other has slope 1.
(b) Lshaped with kinks where x = 4y.
(c) Lshaped with kinks where x = y.
(d) made up of two line segments that meet
where x = y. One of these line segments
is horizontal and the other has slope 3.
(e) Vshaped with kinks where x = 3y.
2. Harry
Mazzola
has
the
utility
function
U
(
x
1
, x
2
) =
min
{
x
1
+ 2
x
2
,
2
x
1
+
x
2
}
. He has
$40 to spend on corn chips and french fries. If
the price of corn chips is $3 per unit and the
price of french fries is $4, then Harry will
(a) definitely spend all of his income on corn
chips.
(b) definitely
spend
all
of
his
income
on
french fries.
(c) consume at least as many corn chips as
french fries but might consume both.
(d) consume at least as many french fries as
corn chips but might consume both.
(e) consume equal amounts of french fries
and corn chips.
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 Spring '10
 JOSEPHPETRY
 Economics, Utility

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