Problem Set 1
4. (4 pts.) False. When demand decreases, the equilibrium price falls, and this causes no other shifts in supply or demand. Remember, a change in price cannot cause a shift in the demand curve, but a shift in the demand curve can cause
Economics 403 Spring 2009 Professor Alexander Problem Set 2 Due: Wednesday, January 21, at 11 :00 A.M. R3. (10 pts.) You Paint (P) Write (S) 1 P costs S 1 S costs 4 P Roommate 1 P costs 1/25 S 1 S costs 25 P
a.) False . You sacrifice more songs for each p
Economics 403 Spring 2009 Professor Alexander Problem Set 3 Due: Monday, January 26, at 11:00 A.M. R1. (4 pts.) Plot the bundles and then draw dotted lines through bundle A (see graph below) to form four quadrants.
Bundle B lies in the northeast qua
Economics 403 Spring 2009 Professor Alexander Problem Set 4 Due: Monday, February 2, at 11:00 A.M. R15. (4 pts.)
Based on R6, we know the following points lie on the demand curve for X: (2, $8), (4, $4), and (5, $3). We know this because of the part