105midterm1_sp062

105midterm1_sp062 - Economics 105 Midterm 1 Name Discussion Section You have seventy-five minutes to complete the quiz Be sure to get to all five

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Economics 105 Midterm 1 March 23, 2006 Name: Discussion Section: You have seventy-five minutes to complete the quiz. Be sure to get to all five questions. Explanations are required for all answers. 1. (14 pts) 2. (15 pts) 3. (12 pts) 4. (18 pts) 5. (16 pts) 1 1. Lucy enjoys consuming tea ( x ) and cookies ( y ). Her expenditure function is given by: e = p x U + p y U a) Derive Lucy’s Marshallian demands (4 pts) b) Derive Lucy’s Hicksian demands (4 pts) c) Derive Lucy’s indirect utility function (4 pts) d) Fill in the blank! “Indirect utility functions are homogeneous of degree in .” (2 pts) 2 2. Peter and Susan are the only two people in the whole wide world. Both Peter and Susan like consuming adventures ( x ) and presents ( y ). Peter is endowed with x P = 10 and y P = 40 while Susan is endowed with x S = 20 and y S = 20. a) Draw the Edgeworth box associated with their endowments. Graph some ‘normal’ looking indifference curves through the endowment point and show where trades could...
View Full Document

This note was uploaded on 05/13/2010 for the course ECON 105D taught by Professor Cur during the Fall '09 term at Duke.

Page1 / 6

105midterm1_sp062 - Economics 105 Midterm 1 Name Discussion Section You have seventy-five minutes to complete the quiz Be sure to get to all five

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online