intmicro_midterm1_practice_solutions

# intmicro_midterm1_practice_solutions - MIDTERM I PRACTICE...

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c) decreases. d) is ambiguous. Ans: B 5. Suppose that a consumer has the utility function U = 5A + 7B . If A is measured on the horizontal axis a) The indifference curves will be L-shaped. b) The indifference curves will be horizontal. c) The indifference curves will be straight lines with slope –5/7. d) The indifference curves will be straight lines with slope –7/5. Ans: C 6. Suppose for a utility function that the marginal utility for good x is given by MU x = 5y 2 /x a) The more is better assumption is not satisfied for x in this utility function.
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## This note was uploaded on 04/05/2012 for the course ECON V31.0010 taught by Professor Gemici during the Spring '11 term at NYU.

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intmicro_midterm1_practice_solutions - MIDTERM I PRACTICE...

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