hw2 - 12 13 14 15 Y X Suppose that she currently has 2...

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Econ 302 Fall 2010: HW 2 1. Chapter 2, exercises 10 2. Chapter 3, exercises 2, 7 3. Suppose supply and demand in a market are given by the following curves: Q D = 80 - 10 P Q S = 30 + 15 P Graph this market, and Fnd the equilibrium price and quantity, and the elasticity with respect to price of both supply and demand at the equilibrium price. Are they elastic or inelastic? 4. What kind of indifference curves best describe preferences over dol- lars and yen? 1
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5. Consider a consumer with the following preferences: 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11
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Unformatted text preview: 12 13 14 15 Y X Suppose that she currently has 2 units of good x , and 8 units of good y . If I offer to sell her more of good x at the price of 1 unit of good y per unit of x , how many will she buy? How many will she buy if the price is 2 units of y 2 6. Consider a consumer with the following preferences: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Y X What is her willingness to pay for more X when she has 7 units of Y and 3 units of X? 3...
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This note was uploaded on 03/01/2011 for the course ECO 302 taught by Professor Waspi during the Spring '10 term at Ill. Chicago.

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hw2 - 12 13 14 15 Y X Suppose that she currently has 2...

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