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chapter3_noanswers - Practice Problems for Chapter 3...

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Practice Problems for Chapter 3: Constrained Consumer Choice Econ 301 ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Draw the indifference curves for rock concerts and food for each of the following: (a) a typical 17 - year - old (b) a typical 75 - year - old 2) Draw the indifference curves for nickels and dimes. Would they ever have a non - constant slope? Explain. 3) Suppose Joe's utility for lobster (L) and soda (S) can be represented as U = L 0.5 S 0.5 . Draw the indifference curve that yields a utility level of 9. Calculate the MUL, MUS, and MRS of L for S on that indifference curve when S = 3. 4) Lisa has an income of $100. She spends all of her income on pizza and burritos. A pizza costs $10 and a burrito costs $5. However, the store where Lisa buys her burritos has a special deal. After you've bought six burritos, then you can buy each burrito for $2.50. Draw Lisa's opportunity set. 5) John is indifferent between canned soup and fresh soup. Canned soup sells for $1 per serving and fresh soup sells for $2 per serving.
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