NYU Fall 2015
ECON-UA10-001
Intermediate Micro
Problem Set 5
Due next Tuesday Oct 13th: drop it in Seher Gupta's mailbox on the 6th floor of the Econ Dept no later
than 5pm [there is no Micro class next Tuesday].
1. A consumer has preferences represented
Handout 11
Profit
General definition (per unit time, e.g., in a year):
We usually write:
,
,
where is profit, is output price, is the wage rate, and is the rental rate on capital. We
sometimes use as a convenient shorthand for the fixed costs.
Accountin
Intermediate Microeconomics
Problem Set 7: Cost and Production
Due Nov 11, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
Question 1 Suppose a firm has a CES production function
2
( ) = 05 + 05
and the firm
Intermediate Microeconomics
Problem Set 4: Demand Functions
Due October 7, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
A consumer has a quasi-linear utility function (1 2 ) = (1 ) + 2 , where (1 2 )
is the
Intermediate Microeconomics
Problem Set 1: Budget constraints and Preferences
Due September 16, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
There are two commodities, = 1 2, with prices denoted by 1 2 0 an
Intermediate Microeconomics
Problem Set 3: Consumer choice
Due September 24, 2016
In answering each question, be sure to explain your reasoning and show any calculations.
In answering each of these questions, you should use the following assumptions. Ther
Intermediate Microeconomics
Problem Set 10: General Equilibrium
Due December 16, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
In the following questions, we assume there are two goods, and , and two consume
Lecture Notes: Intermediate Macroeconomics
Labor Market: Output, employment, and productivity
M. Cary Leahey
Summary topics
Begin the study of the macroeconomics of full employment
Develop theoretical (unified) model with three markets
Labor market (these
Lecture Notes: Intermediate Macroeconomics
Asset Market, Money, and Prices
M. Cary Leahey
Summary topics
Role of money-what it is and why we hold it
Measuring money - the monetary aggregates
Money creation the role of the central bank
Money demand in a br
Test your understanding for the final
Question 1
Suppose that there are 2 firms in a market. One firm is a dominant firm and behaves like a Stackelberg
leader. The other firm is the follower. The firms compete in quantities and face market demand describe
Lecture Notes: Intermediate Macroeconomics
Economic Measurement
M. Cary Leahey
Summary topics
How to look at data: everything is relative
NIPA/GDP accounting and relationship to real world
Three approaches to measuring GDP
GDP and well being
Saving and we
Intermediate Microeconomics
Problem Set 9: Oligopoly and Game Theory
Due December 9, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
Question 1 There are two firms producing bottled water. Each firm has consta
Intermediate Microeconomics
Problem Set 5: Uncertainty & Consumer Surplus
Due Nov4, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
Question 1 Mary has an income of $5000. She has a probability 02 of being inv
Intermediate Microeconomics
Problem Set 8: Externalities and Monopoly
Due December 2, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
Question 1 Suppose there are two firms, and , that produce identical goods
Handout 9
Revealed Preference
Let us assume that preferences:
do not change while the choice data are gathered.
are strictly convex.
are monotonic.
Together, convexity and monotonicity imply that the most preferred affordable bundle is unique.
If preferen
Handout 5
Preferences
Recall that a consumption bundle is a pair of numbers,
,
, where
is the individuals consumption of
good 1, and
is the individual's consumption of good 2. We will say that an individual prefers
consumption bundle
,
, to consumption bu
Handout 4
Taxes and Subsidies
We discussed how different taxes impact the budget constraint. The main cases are:
1. The lump-sum tax. The government takes away some fixed some of money, R. The new
budget constraint is
In practice, lump-sum taxes are qui
Handout 2
Price Elasticity of Demand
The price elasticity of demand is a measure of the responsiveness of the quantity demanded in
response to a change in price. It is usually defined as the ratio of the percentage change in
demand to the ratio of a price
Handout 8
Income and Substitution Effect
In the previous set of notes, we derived Marshallian demand functions. Here, we examine in
greater detail how they can be used to study how price changes impact demand. When a price
changes, two things are happenin
Handout 7: Utility Maximization and Expenditure Minimization
Utility Maximization
max
s. t.
,
,
,
,
0
Marshallian Demand Functions
The solution to this problem is a pair of functions called Marshallian demand functions:
,
,
,
Indirect Utility Func
Handout 6
There are some important classes of preferences that we will use repeatedly in this course.
Cobb-Douglas Preferences
Cobb-Douglas preferences are preferences that can be represented by utility function
,
Now, because monotonic transformations of
Handout 3
Scarcity and Tradeoffs
Consider the following two questions:
Are you in favor of a policy that reduces traffic fatalities by requiring seatbelts and air bags in
cars?
Do you favor improving public health by banning the use of asbestos in the con
Handout 1
Doing Well in This Course
1.
2.
3.
4.
5.
Come to lecture
Come to recitation
Do all problem sets and practice exams
Read the textbook
If you dont understand a problem solution or part of book, keep asking (friends, TAs,
me) until you do!
Some Bas
Intermediate Microeconomics
Problem Set 6: Partial Equilibrium & Auctions
Due Nov 4, 2016
In answering each question, be sure to explain your reasoning and show any
calculations.
Question 1 The market for focaccia has a supply curve defined by the equatio
Test your understanding for the final
Question 1
Suppose that there are 2 firms in a market. One firm is a dominant firm and behaves like a Stackelberg
leader. The other firm is the follower. The firms compete in quantities and face market demand describe
Chapter 10 outline and graphs
BERTRAND (price-setting) OLIGOPOLY:
In the Cournot model, each firm chooses (simultaneously) a profit maximizing output based on its
expectation about the rival firms strategy choice.
Total output equal to sum of each firms C
NYU Fall 2015
ECON-UA10-001
Intermediate Micro
Problem Set 6
Due next Tuesday Nov 3rd: hand it in to the professor in class or drop it in the TA's mailbox on the 6th
floor of the Econ Dept no later than 5pm.
1. Assume that the preferences of two agents fa