Changing the inputs
So far in the course, weve built a model of consumer choice:
A decision maker will choose so as to best achieve her objectives, given
the constraints that she faces
Econ 1110: Intermediate Microeconomics
Demand
Now we will do comparati
The consumer choice model
Remember that our goal right now is to model this:
Econ 1110: Intermediate Microeconomics
Constraints and Choice
A decision maker will choose so as to best achieve her objectives, given
the constraints that she faces
We had a to-
Economics 1110:
Intermediate Microeconomics
Spring 2013
Problem Set 1
Due in class on Wednesday, February 6
Instructor: Amy Serrano
1. Sketch a couple of the indifference curves associated with each of the following kinds
of preferences, and indicate the
ECON1110: Intermediate Microeconomics Spring 2013
Professor: Geoffroy de Clippel
Problem Set 1 Solution
1. (25 points) Find the first derivative of the following functions.
a. abx b1
a
b. ax b
1
1
(ax bx 2 ) 2 (a 2bx )
c. 2
2
x
d. 2 xe
Econ 1110 S01, Spring 2015
Jim Campbell, Brown University
Problem Set 4: General equilibrium in an exchange economy
Due Wednesday, March 11th, in class or by 5pm to the box in the basement of Robinson Hall.
1
Solving for competitive equilibrium (25 points
Economics 1110:
Intermediate Microeconomics
Fall 2008
Problem Set 1
Due in class on Wednesday, September 10
OR (just this once) in section on Thursday, September 11
Instructor: Amy Serrano
1. Sketch a couple of the indifference curves associated with each
Oct 20 Short-Run Cost Minimization
09:00:00
20/10/2008
Short-Run Cost Functions
In short run when factor X2 fixed, y = f(X1,X2). If firm wants to increase
amount of X1 produced it will have to do so at a higher cost
But when all factors are variable they
Sep 24 Labor Supply
19/09/2008 09:58:00
Overview
1) Budget Constraints
Composite Good a good representing all other goods besides X 1.
2) Preferences
3) Income and Substitution Effects
4) Adjusting the Budget Constraint
Non-labor Income
Exercise Deriving
Nov 10 General Equilibrium Exchange
10:45:00
10/11/2008
All models so far of partial equilibrium one market in isolation. General
equilibrium is model of all markets in an economy.
In GE, many previously exogenous variables (income, technology)
become end
Econ 1110 S01, Spring 2015
Edgeworth box practice for Midterm 1
These are a couple of practice problems for sketching Edgeworth boxes. Your midterm on March
4th will include a question similar in style to these, as well as questions related to the materia
ECON 1110: Intermediate Microeconomics
Spring 2013
Professor: Georoy de Clippel
Problem Set 5 - Solutions
1. (40 points) Allison has utility function u(x1 , x2 ) = x1 x2 . She earns income of $100.
The price of good 1 is p1 = $1 and the price of good 2 is
Economics 1110: Intermediate Microeconomics
Fall 2008
Mathematical Warm-up
Instructor: Amy Serrano
In the following problems, a, b, and c are constants.
1. Find the derivative of the following functions:
a. f(x) = a + bx
b. f(x) = a + bxc
c. f(x) = ln(x)
ECON 1110: Intermediate Microeconomics
Spring 2013
Professor: Georoy de Clippel
Problem Set 4 - Solutions
1. (50 points) Suppose that Anne eats only apples (good 1) and oranges (good 2). Her
preferences are represented by the following utility function: u
ECON 1110: Intermediate Microeconomics
Spring 2013
Professor: Georoy de Clippel
Problem Set 3 - Solutions
1. (60 points) For each of the following utility functions, graph the indierence curves associated with the bundles (1, 2) and (3, 2). Find one other
ECON 1110: Intermediate Microeconomics
Spring 2013
Professor: Georoy de Clippel
Midterm 2 - Solutions
1
Denitions
1. An inferior good means its demand decreases as income increases.
2. The substitution eect is part of the change in optimal bundle that is
Econ 1110 Spring 2015, S02
First Exam
February 19 Time : 1 hour 20 mins.
1. O.J. Square consumes left gloves and right gloves in equal amounts. Let
l and r denote his consumption of left and right gloves respectively. His
utility function is U (l, r) = mi
Econ 1110 Spring 2015, S02
First Exam
February 19 Outline of Answers
1. (i) The demand is l = r = 15.
(ii) He still consumes equal amounts of l and r, which means that
l = r = 10.
(iii) The tax revenue is $10.
(iv) After tax income is $20 and the new dema
58
Solutions to Exercises
Chapter 18 Solutions
1.(a) Correction. The textbook should read: What condition or conditions must hold for the
TV to be considered a public good? The answer is: Nonexclusivity in use. Once the
television is bought, neither Fabio
Econ 1110, May 15, 2015
Answers to Final Exam
1. (a) For py = 1, MRS equal to the price ratio yields x = 16/p2x . Substituting in the budget equation yields y = m 16/px . (Note that this is
non-negative under the assumption that y 16/px ).
(b) v(px , m) =
Lecture Outlines The Theory of the Consumer
Wednesday, September 3, 2008
Course Introduction
I. Are you in the right place?
II. Course Overview
III. Administrative stuff
Grading
Homework policy
Course webpage
Final Exam Date
Etc.
Friday, September 5, 2008
Econ 1110 S01, Spring 2015
Jim Campbell, Brown University
An example of nding price elasticity of demand
Question
A consumer has demand for a good according to the demand curve x = 102p. Find an expression
for price elasticity of demand. What is the elast
Econ 1110 S01, Spring 2015
1
Answers to Problem Set 2: Constraints and Choice
Drawing budget sets (20 points)
1a): x1 + 3x2 30
2
1b): 4x1 + 2x2 20
Optimal choice by tangency (20 points)
p1
x
a) M RS = p2 gives 2x21 = 1 and so x2 = 2x1 . Substituting this
Econ 1110: Intermediate Microeconomics (S01)
Answers to First Midterm Exam
Jim Campbell
Brown University
March 4th, 2015
1
Healthy eating
a) (5 points) p1 x1 + p2 x2 m: in this case 4x1 + 2x2 12
b) (10 points) For parts b) and c):
c) (12 points) Since his