Econ 3030
Fall 2013, R. Masson
Problem Set 2 Solutions
Problem 1: There are two goods: x and y . You have money income of
M = 30. The unit price of good x is 2, and the unit price of good y is also 2.
a. Write the formula for the budget set and for the bu
Econ 3030
Fall 2013, R. Masson
Problem Set 4 Solutions
Problem 1: Suppose that the utility function of a person is quasi-linear,
of the form U = v (x1 ) + x2 .
1. Draw a picture of the Slutsky substitution eect after an increase in the
price of good 1. As
Econ 3030
Fall 2013, R. Masson
Problem Set 2
Problem 1: There are two goods: x and y . You have money income of
M = 30. The unit price of good x is 2, and the unit price of good y is also 2.
a. Write the formula for the budget set and for the budget line
Econ 3030
Fall 2013, R. Masson
Problem Set 4
Problem 1: Suppose that the utility function of a person is quasi-linear,
of the form U = v (x1 ) + x2 .
1. Draw a picture of the Slutsky substitution eect after an increase in the
price of good 1. Assume that
Econ 3030
Fall 2013, R. Masson
Problem Set 3
Problem 1:
Suppose that the utility function of a person is given by
1/2 1/2
U = 2x1 x2 . The price of x1 is p1 , the price of x2 is p2 , and the income is
M.
a. Set this up as a Lagrangian or zero multiplier p
ECON 3130: Intermediate Microeconomics
First Midterm (Spring 2013)
1. Use indifference curves and a budget line (or budget lines) to illustrate the following
situations:
a. Water usage in the dorm is free. Kathy always takes a shower for 20 minutes a day.
Econ 3030
Fall 2013, R. Masson
Problem Set 1 Solutions
Problem 1: Suppose the demand curve for x is p = A Bx, where A, B
are constants. Revenues, or the amount spent on x, are given by R = px.
a. Show the vertical and horizontal intercepts of the demand (
ECO 303: Intermediate Microeconomic Theory
Problem Set 2
Due Date: Sept 17th (in the beginning of the class).
Late submissions will not be accepted.
Question 1 (20pts)
SOLUTION
Dene:
(i ) Indierence Curve: The curve composed of all bundles yielding the
sa
ECON 3130: Intermediate Microeconomics
First Midterm (Spring 2012)
1. Use indifference curves and a budget line (or budget lines) to illustrate the following
situations:
a. When Kelly starts working, he consumes both instant noodle and lobsters. If his
in
Econ 3030, Fall 2013, R. Masson
Chapter 11: p. 1
Chapter 11: Asset Markets
I. The Varian Text and My Notes
A. Calling these notes Chapter 11 Notes is misleading, I present a model which is not in
Varian and do not address virtually any of the material in
ECON 3030 Homework 1
(100 points total, uniformly distributed, a and b count as separate questions)
1. Tim consumes only apples and bananas. He always prefers more apples to fewer, but he gets
tired of bananas. If he consumes fewer than 29 bananas per wee
T. Mitra, Fall 2013
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2013
Problem Set 2
Solution to this problem set is due on Tuesday, September 17, in class.
You should submit written solutions to Problems 1-4; these will be graded.
Problem 5 is for
ECON 3030 Homework 2
(100 points total, a-d are separate questions, bullet points are not)
1. Suppose the utility function U (x; y) = y + x2 represent a person preferences. Are her
s
preferences "well behaved"? Show precisely why.
2. A consumer has prefer
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Econ 3030
Fall 2013, R. Masson
Problem Set 11 Solutions
Problem 1: Draw separate diagrams to show a rm under monopolistic
competition making supernormal prots (positive rents) in the short run
and normal prots (no rents) in the long run.
Answer:
I reused
T. Mitra, Fall 2013
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2013
Problem Set 1
Solution to this problem set is due on Tuesday, September 10, in class.
You should submit written solutions to Problems 1-4; these will be graded.
Problem 5 is for
1
1 Representation of Preferences by a Utility Function: Implications
1
Representation of Preferences by a Utility Function: Implications
(a)
If x
y , then x y and y x.
x y u(x) u(y )
y x u(y ) u(x) u(y ) < u(x)
Therefore, u(x) > u(y ).
(b)
x y x y and y
T. Mitra, Fall 2013
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2013
Problem Set 3
This problem set is for practice only
DO NOT submit written solutions to these problems
1. [Changes in Demand]
A consumers consumption set is R2 , and her (weak) p
Econ 3030
Fall 2013, R. Masson
Exam 1 Solutions
Problem 1: (10 pts) List the four points on the graph below in order of
decreasing elasticity. If any two points have the same elasticity then you can
list them in either order. Explain your reasoning.
p
B3
T. Mitra, Fall 2014
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2014
Problem Set 2
Solution to this problem set is due on Tuesday, September 16, in class.
You should submit written solutions to Problems 1-5; these will be graded.
Problem 6 is for
Econ 3030, Spring 2014, R. Masson
Chapter 15: p. 1
Chapter 15: Market Demand
I. Contents of this Chapter
A. Horizontally summing individual demands
1. Trivial, Intro to Econ should have covered this, so we need not do so
2. Varian breaks this down to inte
Econ 3030
Spring 2014, R. Masson
Due Wednesday February 12 at the end of class.
Problem Set 3
Problem 1:
Use budget lines and indierence curves to illustrate the
following situations.
a. The price of food is 1. If my income is less or equal to 50, I spend
ECON 3130: Intermediate Microeconomics
Spring 2012
Solutions to the First Prelim
1.
a.
lobsters
noodle
b.
x2
x1
c.
Organic strawberries
The dashed line is the budget line
Non-organic strawberries
2. a. U(x,y) = (x1/2) + y
MUx = (x-1/2) , MUy = 1, MRS = MU