spring 05quiz2

Intermediate Microeconomics: A Modern Approach, Seventh Edition

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ECONOMICS 300 QUIZ 2 SPRING 2005 PLEDGE:____________________________ NAME:______________________________ 1. (10) George collects guns (G) and bibles (B). In his display case at home, he always places one gun next to one bible. We could say that George always consumes guns and bibles in a fixed proportion. Having more of one without more of the other makes him no better off. On the graph below, draw some of George’s indifference curves for guns and bibles. b. George’s friend, Karl, consumes guns and bibles too, but he doesn’t have to purchase them together in order to enjoy them fully. In fact, he views guns and bibles as perfect substitutes for
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Unformatted text preview: one another. Karl always prefers to have more guns and bibles, but hes indifferent between having 1 extra gun or 2 extra bibles. Draw some of Karls indifference curves on the graph below. 2. (5) Take the indicated derivatives of the following functions: y = 3(x 2 + x)(ln(x)) dy/dx = z = x 2 y 4 z/ x = 3. (5) Suppose you are considering three artificial sweeteners: Splenda, Nutrasweet, and Equal. Using these three goods, provide an example of preferences that are not transitive. Explain....
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This note was uploaded on 01/31/2008 for the course ECON 300 taught by Professor Nonnenmacher during the Spring '08 term at Allegheny.

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spring 05quiz2 - one another. Karl always prefers to have...

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