Law & Economics Homework #1 2.2: Productive efficiency is making a combination of inputs and getting as much outputs for as few inputs as possible. Whereas, allocative efficiency is the distribution of goods and services in order to maximize social w
Solutions to Problem Set 2
a) To begin, calculate the percentage change in quantity demanded for cream cheese:
Now calculate the percentage change in the price of bagels:
With both of these steps completed, you can now calculate th
Problem Set #1
NOTE: This is a problem set and has no bearing on your grade. It is just an opportunity for you to test yourself
before you take any exams.
It is a good idea to use graph paper for any graphing question. It will give the practice you need a
Problem Set #6
This small, open economy nation produces commodity X such that the supply function is given
as Px = 2Qs. The demand for this commodity within the nation is Px = 20 2Qd. The world
price for commodity X is set at $2 below this economys equili
Problem Set #4
Given the utility data below, answer the following questions:
1. How much of each commodity will this consumer purchase?
2. What is the total utility of the consumer after the purchases are made?
3. Graph the budget constraint along with an
Consumer Demand Theory: Utility and Indifference Curve Approaches
The next two questions refer to the following table.
Number of Apples Consumed
Marginal utility increases for the
First two apples
Saffron Why is it expensive? The saffron crocus are the dried stigmas of the flower itself. Each flower only produces three of these and the are so fragile that they have to be collected by hand. It's the scarcity of saffron and it's labourintensive harve
1. Illustrate a PPC with increasing opportunity costs.
2. Why will a PPC have a negative slope? How do you interpret this negative slope?
3. An economic system chooses to produce 100 capital goods and 300 consumer
goods. Due to changes in dem