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micro_problem_set#1

# micro_problem_set#1 - marginal change in pizza(one-unit...

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Problem set #1 Principles of Microeconomics 2252 Due January 25, 2011 This problem set is to be done in Excel. In the Excel spreadsheet, a dialog box will appear asking you to “do some practice problems” or “take test,” choose “take test” this ensures randomly assigned numbers. When you answer a question, go to the answer sheet to input your answer. The answer sheet will tell you whether your answer is the correct one. 1. Do questions 1-4, 8, 9, 12-17 on the PPC Excel file Hints: Values that are attainable and efficient lie on the production possibilities curve (PPC). Values that are attainable and inefficient lie inside the PPC. Values that are unattainable lie outside the PPC. For questions 13 15, you will need to set the initial value of pizza to the number specified in the question, and then change the amount of pizza so that it represents a
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Unformatted text preview: marginal change in pizza (one-unit change), and find how much pasta is lost as a result (subtract the two pasta numbers). To answer question 17, you must use the goal seek button on the PPC tab. Enter the value of pasta you want, and then enter the cell address I20. 2. Do questions 1-3 on the Util198 Excel file. Hints: The endpoints of the budget constraint represent the largest amount of a good you can buy. Divide income by the price of the good to find this answer. You will need to use the budget constraint equation ± ²³´ µ ²¶· to answer question 3. Extra Credit: If you answer the following questions from ppc98.xls I will give you one extra credit point per correct answer. Questions 5-7, 10-11 For question 11 you will need to use goalseek the way you used it in question 17....
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