Sample Consumer Theory Exam Questions

Sample Consumer Theory Exam Questions - ECON 380 Sample...

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ECON 380 Sample Consumer Theory Exam Questions The following are questions taken from some of my previous exams. 1. Demonstrate that indifference curves cannot cross by appealing to the preference axioms. 2. If you know that Marshallian demand for are and , respectively, can you calculate Marshallian demand for ? ) , , , ( and ) , , , ( 3 2 1 2 3 2 1 1 I P P P x I P P P x 10 ) 100 , 5 , 1 , 2 ( * 1 = x 30 ) 100 , 5 , 1 , 2 ( * 2 = x ) 100 , 5 , 1 , 2 ( * 3 x 3. A consequence of duality is that the expenditure function is the inverse of the indirect utility function as was seen in the flow chart in the text and that was presented in class. If the indirect utility function is 5 . 5 . 2 ) , , ( y x y x P P I I P P V = : a. Calculate the expenditure function by solving for I . b. Given the expenditure function that you calculated in (a), use Shephard’s Lemma to derive the Hicksian demand curve for good x . c. Are x and y are net substitutes or net complements? Do you have to make any assumptions in order to determine this? 4. Hannah is my five-year-old daughter whose utility function is . (Never mind what are – you’ll find that out when you are the parent of a five-year-old.).
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Sample Consumer Theory Exam Questions - ECON 380 Sample...

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