Econ 710 Homework 4
More Demand Theory
Fei Li
University of North Carolina at Chapel Hill
September 11, 2014
Due: Sep. 26
1. MWG 3.H.6
2. (JR 2.4) A consumers expenditure function is e (p, u) = up1 p2 / (p1 + p2 ). Find a direct
utility function, u (x), t
Econ 710
Lecture Slides 1
Decision Theory Foundations
Fei Li
University of North Carolina, Chapel Hill
August 27, 2013
Fei Li (UNC)
Lecture 1
August 27, 2013
1 / 32
Introduction
Decision theory (DT) is the study of decision making of a decision
maker (DM)
ECON 710 - Midterm 1 - Answer Key
Steve Raymond
1
Q1
Since x(p, y) solves the consumers problem, know that x(p, y) = C (B(p, y), ). We also know that x(p, y)
B(p, y), meaning that if x0 x(p, y), then p x0 y.
Use contradiction. Assume Walras Law doesnt ho
ECON 710 - HW3 Answer Key
Yi Zhong
September 16, 2014
These are not complete answers, but represent general sketches.
1
1.1
3.D.3
A
The question is meant to be show HD1 in w, obviously not in both (p, w), since being HD0 in those is a
requirement of being
Econ 710
Lecture Slides 3.4
Aggregate Demand Theory
Fei Li
University of North Carolina, Chapel Hill
September 7, 2013
Fei Li (UNC)
Lecture 3.4
September 7, 2013
1 / 10
Aggregate Demand
Consider an economy with I utility-maximization consumers.
To what ex
ECON 710 - HW2 Answer Key
Yi Zhong
September 7, 2014
1
MWG 2.D.1
2 periods with w > 0. Let c = (c1 , c2 ) R2+ denote the consumption vector representing consumption in
both t = 1, 2. Let p = (p1 , p2 ) R2+ be the corresponding price vector.
In period 1, n
Midterm1 Answer Key
Yi Zhong
September 14, 2014
1
Question 1
(a) No.
We have two groups of demand data:
(1) p = (2, 4), x = (1, 4), and m = 10;
(2) p0 = (6, 3), x0 = (2, 1), and m = 15.
With price and income level of (1), we have:
p x0 = 2 2 + 4 1 = 8 < 1