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 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 (
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 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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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
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
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
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
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 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
ECON 3030 Homework 2 (modeling preferences)
(100 points total; to get full credit, all work arriving at the answer must be shown)
1. (15 points) Bob consumes only apples and bananas. He always prefers more apples to fewer,
but he gets tired of bananas. If
T. Mitra, Fall 2014
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2014
Problem Set 1
Solution to this problem set is due on Tuesday, September 9, in class.
You should submit written solutions to Problems 1-5; these will be graded.
Problem 6 is for
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
T. Mitra, Fall 2014
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2014
Notes on Consumers Optimum
1
Introduction
The purpose of these notes is to provide a formal analytical approach to the consumers optimum,
that is (i) completely rigorous and sel
T. Mitra, Fall 2014
Intermediate Microeconomic Theory (Econ 3030-1)
Fall 2014
Partial Dierentiation
1
Introduction
For this review, we will conne our attention entirely to the theory of partial dierentiation of real
valued functions of two real variables.
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
ECON 3030 Homework 1 (modeling contraints)
(100 points total; to get full credit, all work arriving at the answer must be shown)
1. (10 points) Suppose the quantity of good is measured on the horizontal axis and good is
measured on the vertical axis. Let
Econ 3030 R. Masson
Fall 2015
Due: Wed Sep 2, 2015
Problem Set 1 Solutions
Part 1: Elasticity of Demand
1. In the diagram below, what can you tell us about the relative price
elasticities of demand at the points A,B,C and D? Hint : Professor
Massons lectu
Econ 3030 R. Masson
Fall 2015
Due: Thr Sep 10, 2015
Problem Set 2 Solutions
Problem 1: Budget sets with sales tax (paid by purchaser).
Take as given the following: the sticker price for a six pack of beer is
$10.00 and the sticker price for pretzels is $2
Econ 3030 R. Masson
Fall 2015 PS 10
Not Due. Practice Only
Problem Set 10 - Solutions
Cost Curves
Problem 1: Mr. McDonald sells eggs. His distributor will buy as many eggs as he produces at $2.40 a dozen (20 cents an egg, but pretend his cost function is