spring2009_midterm1

spring2009_midterm1 - First Midterm Exam Econ 150b...

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First Midterm Exam Econ 150b. Intermediate Microeconomics February 11, 2009 Please write your discussion-section time on each blue book. 1. (30 points.) True or False? Explain. (a) (5 points.) The substitution effect is always negative, that is, it has the opposite sign as the price change. (b) (5 points.) If a consumer is a net seller of a good and the price of the good increases, then he must remain a net seller. (c) (5 points.) A net buyer of a good can be made better off by an increase in the price of the good. However, this can happen only if the price increase causes the consumer to become a net seller. (d) (5 points.) Suppose the consumer is a net seller of a good. If his consumption of that good increases when its price increases, then the good must be inferior. (e) (5 points.) If a consumer is a net buyer of a good and the price of that good increases then he must become a net seller.
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This note was uploaded on 03/01/2012 for the course ECON 121 taught by Professor Samuelson during the Spring '09 term at Yale.

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spring2009_midterm1 - First Midterm Exam Econ 150b...

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