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Unformatted text preview: Intermediate Microeconomics, 2008 Problem Set No 1 due: Jan, 9 / 10 Problems 1) Please answer question 2 from Perlo¡ Chapter 2. 2) Please answer question 7 from Perlo¡ Chapter 2. 3) Please answer question 34 from Perlo¡ Chapter 2. 4) Suppose N consumers each have an identical demand curve for a good which is given by Q = a & bp , where Q is the quantity demanded, p is the price, and a and b are positive constants. What is the market (total) demand curve? Show that the slope of the market demand curve is the summation of the slopes of individuals&demand curves. 5) Calculate the equilibrium price and quantity of processed pork for two di¡erent income levels: use the estimated demand and supply functions E2.2 and E 2.6 from the book, subsituting the average values of the remaining parameters p H ; p C ; p B and let Y 2 f 10 ; 15 g . 6) Make two plots to graph the equilibrium price of pork as a function of income (the implicit function p ( y ) ): make one plot on the right side with a set of demand functions in the p & Q plane and one plot on the left side in the...
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This note was uploaded on 12/10/2011 for the course ECON 401 taught by Professor Burbidge,john during the Winter '08 term at Waterloo.
- Winter '08