04 November 2016
b: i - Since berries will cost less, Jerry will be able to buy more and therefore have more
ii - Since Jerry's income increases, he
07 October 2016
1 A) Since the demand curve illustrates lower demand as prices rise we could also say that
this means as the price increases, more consumers leave the market for the product
because they a
05 December 2016
1) The demand curve of a firm in perfect competition is perfectly elastic because if they charged
a price slightly above market price, the firm would not be able to sell any products.
14 November 2016
1) Market Structures (strongest to weakest)
Perfect competition - strongest competition in market
o A lot of firms with insignificant market share/power
o Price taker (cant determine pri
Chapter 4 Problems
21 September 2016
1 Since the price elasticity of demand for air travel is 8 demand is elastic. Since the price
elasticity of demand for gasoline is 0.2 demand is inelastic. Based on these two
Chapter 1 & 3 Homework
14 September 2016
1.) Marginal benefits will decrease as the quantity produced of that good increases.
A.) The substitute effect will decrease
04 November 2016
1) The consumer follows the Utility Maximizing Rule to maximize total utility. The consumers
incentive to change her spending if marginal utilities per dollar are not equal is that, if th
How Global Markets Work
Because we trade with people in other countries, the
goods and services that we can buy and consume are not
limited by what we can produce.
Imports are the goods and services that we buy from
people in other countries.
Fall Semester 2013-2014
101 Principles of Microeconomics
Problem Set 3
Due Date : December 10, 2013 in class. No late homeworks will be accepted!
What to Return : Return only the scantron form. Remember to fill in the circles with a pencil.
Read carefully! If you do not follow the instructions your homework may not be graded!
You have two options:
1. Return the homework to me in the class on October 31, only if you want it to be graded
and returned to you before the tes
The chip in your laptop was made by Intel or AMD;
the battery in your TV remote by Duracell or Energizer; and
the airplane that takes you on a long-distance trip was made
by Boeing or the European firm Airbus.
In the markets for computer chip