Chapter 3-C0nsumerChoice
1. Compute the MRS for each of the following utility functions, and explain which one is
diminishing.
Uzalnq1+lnq2-a
Uqua qf.b
U:ql +q2.C
2. Nancy spends all of her food budge
Ex.Ch.10 GeneralEguilibrium
1. Suppose the demand and supply functions of two goods ql and q2 are as follows:
Q5 =15 3P1 +1732
95' = 6 2P2 + P1
Q13 = 2 + P1
Q; = 1 + P2
Solve for the equilibrium price
Page 1 of 2
Ch.l8_ExternalityPublicGood
1. Using the following equations:
MCP =10+2Q
MGM :Q
MB 2 40 Q
MCSDM =10+3Q
Calculate the market equilibrium output and price.
Calculate the socially optimum out
Ex.Ch.16 Uncertaing
1. By next year, your stock has a 25% chance of being worth $400 and a 75% chance of being
worth $200. What are the expected value and the variance.
2. Hugo has a concave utility f
Ch.09
1. The demand and supply for Pepsi are given by: Qd = 140 - 25P, and Qs = -20 + 75P.
a. Find the equilibrium price and quantity before tax.
b. Show this equilibrium on a diagram.
c. Calculate co
Chapter 5-Demand
1. Nancy spends all of her food budget on pizza and milk. Her utility inction is:
U = Eliq:
Where ql is the quantity of pizza (slices) and q; is the quantity of milk (quarts). Her
mon
Exercise Ch.02 Supplyhemand
1. The following equations describe the demand and supply of good Q:
Qd = 100~ 2P
Qs = 20 + 2P
a. Calculate the equilibrium price and quantity, and show them on a diagram.