hw1ans - Economics 2301 Case, Fair, Oster 9th edition...

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1 Economics 2301 Case, Fair, Oster 9 th edition Assignment 1 Ch. 1 Problems 3, 4, 7 3. (a) normative (b) positive (c) normative 4. Average cost is $1.17 ($19.95/17 hours). Marginal cost is $0. 7. Answers will vary Ch. 1 appendix Problems 1, 2, 3 1. The slopes are as follows: line 1: 5; line 2: –5; line 3: 1; line 4: –1; line 5: slope is 1 as X goes from 0 to 20, and –1 as X goes from 20 to 40; line 6: –250. 25 X 20 15 10 5 1 2 SLOPE 5 SLOPE –5 SLOPE 1 SLOPE –1 SLOPE (0–20) = 1 SLOPE (20–40) = –1 slope is 1 as x goes from 0 to 20, and –1 as x goes from 20 to 40. SLOPE –250 3 4 5 X 40 30 20 10 10 20 30 40 X 25 Y Y Y 20 15 10 5 1 0 0 0 2 3 4 5 X 100 75 50 25 0.1 0.2 0.3 0.4 0.5 X 40 30 20 10 0 0 0 10 20 30 40 X Y Y Y 20 10 10 20 30 40
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Answers to assignment 1 2 2. (a) Negative slope. As price rises, quantity of apples purchased falls. (b) Positive (and declining) slope. As income rises, taxes rise; but the rise in taxes is less at higher incomes than at lower incomes. (c) Negative (and declining) slope. As mortgage rates fall, home sales increase; but the increase in home sales is more at lower mortgage rates than at higher mortgage rates. (d) Negative, then positive slope. As young children get older, they run faster; but as adults get older (beyond a certain age), they run slower. (e) Positive slope. Greater sunshine leads to greater corn yield. (f) Positive, then negative slope. Up to a point, more fertilizer increases corn yield; but beyond a certain point, adding more fertilizer actually decreases the yield. 3.
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hw1ans - Economics 2301 Case, Fair, Oster 9th edition...

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