Econ 308 Problem Set #2: Preferences
Problem 1 (Chapter 3: Varian Review Q1) If we observe a consumer
choosing (x1 ; x2 ) when (y1 ; y2 ) is available one time, are we justied in concluding (x1 ; x2 ) (y1 ; y2 )?
Answer: No. The consumer may be indierent
Econ 308 Problem Set #3: Math Review
Problem 1 Calculate the partial derivatives for the following functions:
1. F (x; y ) = 2 !
2. F (x; y ) = 2x3 y !
3. F (x; y ) = ln x + y !
= 6x2 y ,
4. F (x
Econ 308 Problem Set #4: Solutions
Problem 1 Calculate the marginal rate of substitution for the following utility
1. u(x; y ) = 2x + y ! M RS =
2. u(x; y ) = 2x3 y ! M RS =
3. u(x; y ) = ln x + y ! M RS =
Econ 308 Midterm Examination 1
1 Multiple Choice Questions (1 Point Each)
1. Eduardo spends his entire income on 9 sacks of acorns and 4 crates of
butternuts. The price of acorns is 6 dollars per sack and his income
is 90 dollars. He can just
Econ 308 Midterm Examination 1 (F all 2012)
1 Multiple Choice Questions (10 Points: 1
1. Georgina thrives on two goods: pears and bananas. The cost of peers is
30 pesos each and the cost of bananas is 15 pesos each. If her income
Econ 308 Problem Set #1: Solution
Problem 1 (Chapter 2: Varian Review Q1) Orginally the consumer faces
the budget line p1 x1 + p2 x2 = m. Then the price of good 1 doubles, the price of
good 2 becomes 8 times larger, and income becomes 4 times larger. Writ