Assignment 4
Draw the indifferent curves of two currencies x
(usd) and y (rmb)
Question 2
Draw the indifferent curves of tea and sugar
(assuming we have only two products in the
economy)
Perfect Complements (no substitution)
utility = U(X,Y) = min (X,

Syllabus : Principles of
Microeconomics
Spring 2015
Lecture : Professor Moshe Kim
Assistant: Assistant professor Offer Moshe Shapir
GAF
: Mr. Krisztian Kovacs
E-mails : mk4977@nyu.edu
OMS1@nyu.edu
krisztiankovacs@nyu.edu
Text Book: Mankiw, N. Gregory, "Pr

Assignment 3
Ana divides her income between coffee and pizza (both of which
are normal goods). An early frost in Brazil causes a large increase
in the price of coffee in Shanghai.
a. Show the effect of the frost on Anas budget constraint.
b. Show the effe

Assignment 1
Suppose that an economy produces only two
goods, X and Y. The economys resources are:
100 machines and 50 workers. Each machine
can produce 2 units of X or 4 units of Y per
period. Each worker can produce 6 units of X
or 6 units of Y per per

Assignment 2
Suppose that in an island there are only two
tribes producing only two goods: guns (X) and
butter (Y). Tribe Zolo has 100 workers each
can produce 1 unit of butter or 1 unit of gun.
The other tribe Golo has 400 workers each
can produce 2 uni

Exercise 8
There are six potential consumers of computer games, each willing to buy only one
game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to
pay $35, consumer 3 is willing to pay $30, consumer 4 is willing to pay $25,

Assignment 5
Consider the markets for DVD-players, TV
screens and movie tickets.
For each pair, identify whether they are
complements or substitutes products:
complements
DVD-players and TV screens.
substitutes
DVD-players and movie tickets
substitute

Elasticity of Demand
We use elasticity to learn how a change in a
variable (price / income / price of related good)
effect the quantity demanded.
We know that when price increases, quantity
demanded decreases.
However, we would like to learn about the

Assignment 7
Due: Friday, April, 24th at beginning of class
1. Explain why you agree or disagree with each of the following statements? Illustrate each
with supply and demand curves.
A. The price of good A falls. This causes an increase in the price of go

Homework 1
Due: Friday, February, 13th at beginning of class
1. Suppose that an economy produces only two goods, X and Y. The economys resources
includes: 100 machines and 50 workers. Each machine can produce 2 units of X or 4
units of Y per period. Each

Assignment 6
Due: Friday, April, 17th at beginning of class
1. Consider the markets for DVD-players, TV screens and movie tickets.
a. For each pair, identify whether they are complements or substitutes products:
DVD-players and TV screens. complements
D

Assignment 3
Due: Friday, October, 11th at beginning of class
1. Ana divides her income between coffee and pizza (both of which are normal goods). An
early frost in Brazil causes a large increase in the price of coffee in Shanghai.
A. Show the effect of t

Homework 2
Due: Friday, February, 27th at beginning of class
1. Suppose that in an island there are only two tribes producing only two goods: guns (X)
and butter (Y). Tribe Zolo has 100 workers each can produce 1 unit of butter or 1 unit
of gun. The other

Assignment 4
Due: Friday, March, 13th at beginning of class
1. Draw the indifferent curves of two currencies x (usd) and y (rmb).
2. Draw the indifferent curves of tea and sugar (assuming we have only two products in
the economy)
3. Assume that your incom

Assignment 8
Due: Friday, May, 1st at beginning of class
1. There are six potential consumers of computer games, each willing to buy only one
game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing
to pay $35, consumer 3 is willi

Assignment 9
Due: Friday, May, 8th at beginning of class
1. A monopoly has the following MC curve: MC=10+Q and the aggregate demand curve is
P=120-0.5Q.
a. Calculate the monopolys total revenue curve (as a function of Q)
b. Calculate the monopolys margina

Assignment 5
Due: Friday, March, 20th at beginning of class
1. Here is the relationship between the number of workers and the output of a firm in a
given day :
Output
Labors
MP
TVC
TC
MC
ATC
AVC
0
0
1
8
2
12
3
17
4
23
5
30
6
38
7
48
8
60
A worker costs 10