PS1S - ECON 110 Problem Set 1 Solutions Chapter 1: Problem...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 110 Problem Set 1 Solutions Chapter 1: Problem 4 a. Yes, you faced a tradeoff. The tradeoff was between a higher test score and an evening you’re your friends at the movies. b. The opportunity cost of going to the movies is the fall in your grade. That is the 20 points forgone from choosing to see the movie rather than study. Chapter 1 Appendix: Problem 6 a. To make a graph that shows the relationship between x and y , plot x on the x -axis and y on the y -axis. The relationship is negative because x and y move in opposite directions: As x increases, y decreases. b. The slope decreases as x increases. Slope is equal to the change in y divided by the change in x as we move along the curve. When x increases from 1 to 2 (a change of 1), y decreases from 24 to 22 (a change of 2), so the slope is 2. But when x increases from 4 to 5 (a change of 1), y decreases from 8 to 0 (a change of 8), so the slope is 8. c.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

PS1S - ECON 110 Problem Set 1 Solutions Chapter 1: Problem...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online