Problem Set #3
1 Basics
1. Demand functions. 2. Compensated Demand functions. 3. The Expenditure function. 4. The Indirect Utility function. 5. Using your expressions above and the Slutsky equation, d
Midterm Exam Eco 701 - Fall 2009 Practice
General Instructions: Please answer all of the questions in your blue book. You have the entire class time (approximately 2 hours) to complete the exam. Be su
Problem Set #4
1 Production Functions - Basics
1. For the following production functions, nd expressions for the Marginal Rate of Technical Substitution and sketch a typical Isoquant. (a) x = L K 1 (b
Problem set #5 Competitive Equilibrium Microeconomics 701 A beginning market equilibrium problem: Firms have production function x = A kl . Consumers have demand function x = I / p . In the short run,
Econ 701 Microeconomic Theory - Problem Set #4 Production and Cost functions Consider the following production functions (all greek letters are parameters): a. q = k l 1 b. q = ln(k ) + (1 ) ln(l ) c.
Econ 701 Microeconomic Theory - Problem Set #3 Income and substitution effects, expenditure functions and elasticities Consider the utility function U = x 2 y 2 . 1. For the utility function, find: a.
Problem Set #2 - Answer Key 1. The Lagrangian is: O L:=x^2*y^3+lambda*(I-px*x-py*y); L := x2 y3 C I K px x K py y We take the two derivatives to get: O dLdx:=diff(L,x); dLdx := 2 x y3 K px O dLdy:=dif
Econ 701 Microeconomic Theory Problem Set #2 Consumer Utility and Demand Functions Review Problems Notes: This problem set is designed to give you a little bit of practice in computing derivatives and
Problem Set #6 - General Equilibrium Consider an economy in which there is one firm, one good produced, and one consumer. However, in contrast to the model we did in class, suppose that the consumer h
Problem Set #3 Answer Key
1 Basics
Consider the utility function u = x y 1 . Answer: For this utility function, nd: 1. Demand functions. Set up the Lagrangian: L = x y 1 + (I px x py y ) This gives th
Problem Set #2 Answer Key
1 Basics
1. u(x, y ) = x2 y 3 . Answers: x =
2I 5 px ,
For the rst ve utility functions below, nd the demand functions. y =
3I 5 py .
2. u(x, y ) = (x 2)(y 3) Answers: x =
1
Problem Set #2
1 Basics
For the rst ve utility functions below, nd the demand functions. 1. u(x, y ) = x2 y 3 2. u(x, y ) = (x 2)(y 3) 3. u(x, y ) = 2 ln x + 3 ln y 4. u(x, y ) = x 3 y 5. u(x, y ) = x
Problem Set #1 Answer Key
This problem set is designed to give you a little bit of practice in computing derivatives and solving some simple optimization problems. The focus of much of the problem set
Problem Set #1
This problem set is designed to give you a little bit of practice in computing derivatives and solving some simple optimization problems. The focus of much of the problem set is on the
Midterm Exam Eco 701 - Fall 2009 Practice
General Instructions: Please answer all of the questions in your blue book. You have the entire class time (approximately 2 hours) to complete the exam. Be su
Midterm Exam Eco 701 - Fall 2009 Take Home Question
General Instructions: Please answer the following questions thoroughly and neatly on a nice sheet of paper. Specic instructions: 1. You are to work
Midterm Exam Eco 701 - Fall 2009 Take Home Question
General Instructions: Please answer the following questions thoroughly and neatly on a nice sheet of paper. Specic instructions: 1. You are to work
Econ 701 Microeconomics Mid term exam Matthew Baker General Instructions: Please answer all of the following questions in your blue book. You have the entire class time (approximately 2 hours) to comp
Bond Market
Description of the structure in a historical and global context
Mechanism of the structure (How it works) globally
The role in and the impact of the structure on the economy both in the