Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
Math review
Fundamental Algebraic Properties of Real Numbers
Definitions
1. The set of integers is cfw_,4,3,2,1,0,1,2,3,4,
2. Real numbers: All numbers that can be written in decimal form. Examples: 2, 2, 2.2, 2 , 1/7, etc.
Properties of Real Numbers
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
Name:_ (3pts)
Midterm 2 Practice Exam
(You have 75 minutes to complete this exam)
*Please be sure to answer all the questions. Show all your work. Be specific in your
answers.
TRUE or FALSE (3 points each)
1. True or False: The shape of isoquan
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
Solutions to Problem Set 1
APEC 3001 Spring 2016
1.
For the following functions, find
a
dy
dx
= f 0 (x)
f (x) = ax + bx2 + cx3
Answer: f 0 (x) = a + 2bx + 3cx2
b
f (x) =
ln(x)
6ax3
Use the quotient rule.
f 0 (x) =
3
2
1
x 6ax ln(x)18ax
36a2 x6
Answer: =
c
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
Solutions to Problem Set 2
Problems: Chapter 3 Questions 1,3,4,5,9,14,18
APEC 3001 Spring 2016
Ch3 P1.
Consider the Supply equation for snowboards in the United States.
QS = 400P 8, 000
Always a good idea to graph the situation first.
Producer Surplus is
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
Solutions to Problem Set 3
Problems: Chapter 16 Questions 2, 3, 5, 8, 9, 13, 18, 19, +1 written problem
APEC 3001 Spring 2016
Ch16 P.2
Jill sells bouquets of flowers. Marginal Cost of production is M C =
0.25Q. Jill can sell bouquets for P = 6. Jills neig
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
APEC3001 Consumers, Producers, and Markets
Fall 2015
FIRST PRELIMINARY EXAM
You have 75 minutes to write up your answers. There are 60 possible points on this exam. At one point
per minute, do not spend any more time on a guestion than the points it is Mi
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
Quizl Name: x l M) V)
\
v "Rationality in Economics implies that:
\/ A) People follow their own interests. " Li
B) People are unable to assess their own preferences.
Y
C) People have similar, if not identical, IQs.
D) No one can be considered irrational.
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
APEC3001/FalI 2013
Prof. Temple
(2 points.
Midterm #2 worth 100 points. This is Form A.
Answer the multiple choice questions by writing the letter corresponding to the best answer in the space
provided. These questions are worth 2 points each.
2 I. If yo
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
<62;
/
mo
APEC300l/Fall 2013 NamH'
Prof. Temple
Midterm #1 worth 100 points. This is Form A.
Answer the multiple choice questions by writing the letter corresponding to the best answer in the space
provided. These questions are worth 2 points each.
b 1.
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
l0 (psiW Yet/05
77 A, gem wowmgm
APEC 3001/ Fall 2013 Name
HOMEWORK 4 DUE TUESDAY NOVEMBER 14 by 2 pm. Show your work for partial credit. For
the multiple choice questions, write the letter of the one correct answer in the blank provided.
2 2 1. Becaus
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
X
Quiz 3 Name: Oink, HQV tiyd
1. Which of the following is not true about the determinants of elasticity?
A) If there are many substitutes for a good, the elasticity of that good will be higher than would
otherwise be true. /
B Cars would tend to have mor
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
APEC 3001 Study Guide Practice Problems
1.) Supply: P= 2Q 2 Q : l2: 1 Q
~Demand: P 122Q 4Q ; Z
\ IA ,50lve forP and Q. m _. a W ; \p
Using same supply and demand equations from #1 whjat are the values of Q when a price floor is
set at 10. . g
g.) bema
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
APEC 3001/ Fall 2013
Temple
Name [7W
Homework #2 due Thursday October 17 in class or by 3 pm.
Total number of points is 17. Show your work for partial credit. For the multiple choice questions (worth
1 point each), write the letter of the one correct answ
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
APEC 3001/ Fall 2013
Prof. Temple
Homework 3 Due Tuesday October 29
17 points total. Hand in during class or by 3:00 pm in instructors ofce 217d Ruttan Hall.
M 6 z Age been hired by the IRS to audit a dead economist's consulting rm. He left his
records in
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
Course Syllabus
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001 Fall 2013
WC
0w cfw_00,523
Instructor: Professor Judy Temple
217d Classroom Ofce Building
Ofce hours: Thursday after class and from 1 2 pm.
(Other good meeting times inclu
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Fall 2013
f
[7
APEC3001_Fall 2013 Name Olive V'l owtm
(2 points for clearlywritten name)
Homework 5  Due Tuesday December 3 by 3 pm HWs will be graded and returned on Thursday in
preparation for the last inclass examination on Tuesday December 10.
Answer all que
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
First Preliminary Exam
1
2
2
Question 2:
The market for Coffee on St. Paul campus can be described as
QD = 1800 300P
QS = 600P
A) What are the equilibrium quantity and price?
B) In an effort to increase coffee consumption to hopefully lead to higher test
Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
ApEc 3001
Chapter 33
The utility function
Utility as a way to describe preferences
The theory of consumer behavior has been reformulated in terms of consumer preferences.
Utility is seen as a way to describe preferences.
All that matters about utility as
Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
ApEc 3001
Chapter 32
Consumer preferences
Introduction
We saw that the economic model of consumer behavior is very simple:
People choose the best things they can afford.
The budget constraint indicates what a person "can afford.
Now we shell look at
Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
ApEc 3001
Chapter 31
The budget set
The rationality assumption
Microeconomics boils down to a simple cost/benefit rule: If the benefit is greater than the cost, do it. If not,
dont do it.
People who act in this fashion are called rational.
If people o
Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
ApEc 3001
Chapter 2
Supply and demand
Definitions:
Product  a good or a service
Real price  the price of a product relative to the price
of other products.
Demand  The functional relationship between the price of the product and the quantity demanded b
Applied Microeconomics Consumers Producers And Markets
APEC 3001

Spring 2006
ApEc 3001
Chapter 1
Microeconomics
Study of the behavior of small units in the economy.
We study the decision making process of consumers and producers
Interaction in the market
Resulted effects on quantities exchanged and equilibrium prices.
The fund
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
Externalities, Property Rights,
and the Coase Theorem
161
Chapter Outline
The Reciprocal Nature of Externalities
Property Rights
Externalities, Efficiency, and Free Speech
Smoking Rules, Public and Private
Positive Externalities
Positional Externalities
Applied Microeconomics: Consumers, Producers, and Markets
APEC 3001

Spring 2014
More on externalities and
property rights
Tuesday, Nov. 26
Homework to be posted on Moodle
today Due next Tuesday!
Negative Externalities
Activities involving negative externalities
generate additional costs that are incurred by
third parties.
In the ca