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Unformatted text preview: Econ 360 Homework 5 Nov 25, 2008 (Due December 2 nd .) Andreas Duus Pape Department of Economics Binghamton University email: firstname.lastname@example.org Office Hours: Wed 2-4pm or by appt Phone: x72660 Office: LT 904 1. Suppose the market for ice cream cones in Binghamton is competitive. The market brings together BU students and retailers of ice-cream cones, and they trade ice cream cones for money. Is there a way to transfer money or ice cream cones, after the market has allocated them, that makes at least one student (consumer) better off, without hurting any other student or one of the business owners? Why or why not? 2. Abe, Beth, and Carol each need a pen and a notebook for class. Pens and notebooks come in three colors: Blue, Green, and Yellow. Abe, Beth, and Carol each get zero utility if they dont have at least one pen and notebook; 1 point of utility if they have both a pen and a notebook which do not match in color; and 2 points of utility if they have at least one pen/notebook pair...
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- Fall '08