problem set 2 notes

problem set 2 notes - Economics 103 Professor Friedman Fall...

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Your Name:__________________________________________ Professor Friedman Your TA:____________________________________________ Fall 2011 Your Section Time and Day:_____________________________ Please write neatly! Problem Set 2 Due Wednesday November 14 in class Hand in hard copy! Do not submit answers on line through SPARK! Note that there are two types of problems. You are encouraged to work with someone else in your TA section on the quantitative problems (1, 2, 3); hand in one set of answers to these problems with both your names. You should do the essay questions individually (4, 5, 6) append separate answers with each person’s name for these to your group answers to the quantitative problems. Type your answers; staple pages together. Use a computer spreadsheet and submit computer-generated tables and graphs. Total 20 points. 1. (4 points) Cherry pie demand. Your friend Helen B. Carter has left school to open a bakery. She has done some market research and finds that your neighbors value pies according to the following schedule: Cherry Pie MU 1 $30.00 2 $27.00 3 $24.30 4 $21.87 5 $19.68 6 $17.71 7 $15.94 8 $14.35 9 $12.91 10 $11.62 11 $10.46 12 $9.41 13 $8.47 14 $7.63 a. (2 points) Graph the demand curve for cherry pie. Does the demand curve have a positive or negative slope? Why? Negative slope. Diminishing Marginal Utility.
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This note was uploaded on 04/04/2012 for the course ECON 103 taught by Professor Voorheis during the Fall '08 term at UMass (Amherst).

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problem set 2 notes - Economics 103 Professor Friedman Fall...

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