Econ10a_PSET1

Econ10a_PSET1 - Econ 10A - Problem Set 1 I. Math Review dy...

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Econ 10A - Problem Set 1 I. Math Review 1. . What is the expression for 2/3 5 + 7 yx x 2 dy dx ? 2. y = zx 3/4 + z ln d. What is the expression for y x ? 3. What is the expression for 7l n () . ykx y x ? 4. , dy x E dx y  . a. y= 2 x 2 . What is the expression for E y,x ? b. y=x 3 . What is the expression for E y,x ? II. Preferences and Utility 5. Fred likes apples. He doesn’t really care how many bananas he consumes (they add nothing to his utility.) Draw his indifference curves. 6. My preferences are monotonic. a. Do I prefer 3 apples to 2 bananas? Why or why not? b. Write down a monotonic utility function in apples and bananas. c. Write down a utility function showing I prefer 2 apples to 3 bananas. 7. My utility function is -3x-7y, what’s my optimal consumption bundle? Name some commodities these might be. 8. I need a minimum of 7 apples/week to make one apple pie per week. I don’t like to eat apples unless they are in a pie. (They’ll just sit on the shelf and get rotten in a week if I get less than 7.) I do, however, like bananas, even if they are not in a pie.
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This note was uploaded on 03/03/2011 for the course ECON 10a taught by Professor Babcock during the Winter '11 term at UCSB.

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Econ10a_PSET1 - Econ 10A - Problem Set 1 I. Math Review dy...

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