Res Ec 202 Problem Set #1
Chapters 1 & 2
Chapter 1,
You should know the terms in this chapter, but there are no problems to work
Chapter 2
Answer the following:
1. Suppose the demand curve for a product is given by Q = 300 2P + 4I, where I is
average inco
Dr.AngelaC.M.deOliveira
Lecture17:Chapter4,Individual&
MarketDemand,Part2
Clothing
10
Priceconsumptioncurve
6
A
U1
5
Each price leads to
different amounts of
food purchased
D
B
4
Assume:
I = $20
PC = $2
PF = $2, $1, $0.50
U3
U2
4
12
20
Food (units
per
\
LabWeek7
l. Jennys situation is given by the graph below. Get your answers to the following
questions from the graph.
Composite
Good $ 10
7
a) Sketch the price-consumption curve on the graph. Label carefully.
b) What are the prices of good X when the
Res Ec 202 Problem Set #7
Chapter 4
Answer the following:
1. Draw a graph with arcade games on the horizontal axis and newspapers on the vertical
axis. Joe has $10 per week to allocate between these commodities. The price of newspapers
is $0.50. At the in
Res Ec 202 Problem Set #3
Chapter 6
Chapter 6
Answer the following:
1. Draw a graph showing a set of isoquants that depict capital and labor to be perfect
complements (not substitutable at all) in a production function that exhibits constant
returns to sc
budget line equation is derivative (slope)
engel curve for normal good upward sloping
engel inferior good downward sloping
price goes up substituion becomes more attractive
signaling: costly to fake
risk averse will refuse a fair gamble
risk seeking will
Practice Q & A for Exam 1, Chapters 1-2
Chapter 1
1) Microeconomics is the branch of economics that deals with which of the following topics?
A) The behavior of individual consumers
B) Unemployment and interest rates
C) The behavior of individual firms an
Practice Q & A for Exam 2, Chapters 6-8
Chapter 6
1) A production function defines the output that can be produced
A) at the lowest cost, given the inputs available.
B) for the average firm.
C) if the firm is technically efficient.
D) in a given time peri
Dr.AngelaC.M.deOliveira
Lecture9:Ch7,CostofProduction,
Part2
1)
Always
50
Changes
[email protected]=0
=FC&VC =TC/q =FC/q
=VC/q =TC/q=AFC+AVC
TC
Cost 400
($ per
year)
Total cost
is the vertical
sum of FC
and VC.
300
VC
Variable cost
increases with
production and
the ra
Res Ec 202 Problem Set #8
Chapters 5 & 9
Answer the following:
1. Demand in Market 1 for X is Qd 80 p. Demand in Market 2 is Qd 120 2p. At a
price of $20, which has a larger consumer surplus?
Surplus in Market 1 is $1800, but only $1600 in Market 2.
2. Su
Res Ec 202 Problem Set #6
Chapter 3
Answer the following:
1. Draw indifference curves that represent the following individuals preferences for
hamburgers and soft drinks. Indicate the direction in which the individuals satisfaction (or
utility) is increas
Res Ec 202 Problem Set #4
Chapter 7
Chapter 7
Answer the following:
1. Suppose a firm employs labor as its only variable input. All workers are paid $20 per
day. Output per day and variable cost are shown in Table 7.1 below. Complete the table,
showing la
Res Ec 202 Problem Set #2
Chapter 2, part 2
Chapter 2
Answer the following:
1. The market demand curve is: Q = 600 2p
Find: a. the price and quantity at which = -2
b. the price and quantity at which = -1/2
c. the price elasticity of demand when p = $150
P
Res Ec 202 Problem Set #5
Chapter 8
Chapter 8 with some reminders about Chapter 7
Answer the following:
1. Suppose a perfectly competitive firm has the short-run cost function C 125 q2.
a. Determine the firms output level and profit at prices of $30 and $
Market: Consists of the buyers and sellers of a good and service.
Demand curve:
-what does it represent?
The demand curve represents the demand for a product or service
-What is the horizontal/vertical interpretation of the demand curve and can you
rela
Practice Q & A for Exam 4, Chapters 5, 9, 11
Chapters 5 & 9
1) Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is
A) $30.
B) $70.
C) $400.
D) $800.
E) $1200.
Answer: C
2) Refer to Figure 9.1. If the government establishes a pr
Practice Q & A for Exam 2, Chapters 3-4
Chapter 3
1) Gary Franklin is a movie critic. He invented the Franklin Scale with which he rates movies from 1
to 10 (10 being best). When asked about his scale, Mr. Franklin explained that it is a subjective
measur
Dr. Angela C. M. de Oliveira
Lecture 5: Ch. 2, Supply & Demand
Part 3
We want to know:
What direction price and quantity move in when the market changes?
(shifts in supply and demand)
How much do they change?
Elasticity gives a way to measure how much a
Extra Credit
Question 8 pg 244
The rule of punishing students would be more effective because losses are felt more than gains of
the same size. The policy may not be a good one if you are interested in more than just
attendance
Question 12 pg 245
For ever
Chapter 3
Applying the
Supply-andDemand Model
Instructor: Dr. Miah Tran
Resource Economics 202
University of Massachusetts Amherst
Perloff 7th
Topics
1. How Shapes of Supply and Demand
Curves Matter.
2. Price elasticity of demand (PED):
Sensitivity of the
CHAPTER 11
MONOPOLY
Instructor: Dr. Miah Tran
Resource Economics 202
University of Massachusetts
Amherst
Perloff 7th
MIDTERM 2 SCORE DISTRIBUTION
CLASS GRADE DISTRIBUTION (AS OF
LATE)
TOPICS
1. Market efficiency under Perfect
Competition
2. Monopoly Profi
UMASS AMHERST
RES-ECON 202
INSTRUCTOR: MIAH TRAN
STUDENTS FULL NAME:
STUDENT ID:
The exam consists of two parts: Multiple Choice and Problems. Please enter your answers to the multiple choice
questions in the appropriate box below. For problem solving/ op
CHAPTER 14
GAME THEORY
Instructor: Dr. Miah Tran
Resource Economics 202
University of Massachusetts
Amherst
Perloff 7th
TOPICS
1.Static Games.
Prisoners Dilemma
The Battle of the Sexes
The Matching Pennies Game
2.Sequential Dynamic Games.
GAME THEORY
G