Econ 551
Microeconomics
Assignment 1
Due: Thursday, September 18, 2014, 5:00pm
1a. A consumer is considering how much to work (each week). She can work a maximum of 80 hours
per week. Each hour she doesn't work is an hour of leisure, l. For each hour she
Econ 551
Assignment 3: Solutions
Due: Thursday October 16, 2014, 5:00pm
1. Alex has 1 day to work, and he can produce two goods, bread b, and wine w. If he devotes a
fraction of his day Lb 1 to bread making, he can make
units of bread. If he devotes a
fra
Econ 551
Assignment 1: Solutions
Due: Thursday, September 18, 2014, 5pm
1a. A consumer is considering how much to work (each week). She can work a maximum of 80 hours
per week. Each hour she doesnt work is an hou
Econ 551
Microeconomics
Assignment 1
Due: Thursday, September 17, 2015, 5:00pm
1a. A consumer is considering how much to work (each week). She can work a maximum of 80 hours
per week. Each hour she doesn't work is an hour of leisure, l. For each hour she
Economics 101
Homework 8
Due November , 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. Suppose the market supply curve is a vertical line.
Econ 551
Assignment 4
Due: Thursday, November 13, 2014, 5:00pm
1. In Sweden, speeding fines depend on an individuals income - that is, if you are caught speeding,
the fine you have to pay is higher, the higher is your income. Use the following question to
Econ 551
Assignment 2
Due: Thursday October 2, 2014, 5:00pm
In this assignment, the "substitution effect" associated with a price change is the change in demand
for a good assuming the individual has just enough mone
Econ 551
Assignment 5 Solutions
Due: Thursday, December 5, 2014, 5:00pm
1. A monopolist produces output with constant marginal cost equal to 1. There are
two of consumers that are potentially in the market for the good. Consumer A has
inverse demand funct
Economics 101
Problem Set 8 (the last one!)
Due December 6, 2012
Please indicate your recitation time/number and recitation instructor on your answer.
1
Denitions and Reading Comprehension
For each of the following, write a short denition, in words (one s
Problem Set 3 Solutions
October 16, 2012
1
1.1
Question 1
Part a
The expenditure function is how much income that is required to satisfy some required utility level u at certain
prices p.
E (p, u) =
pi xc (p, u)
i
i
c
where x (p, u) is Hicksian demand.
1.
Economics 101
Problem Set 1 Answer Key
Due September 18, 2012
Question 1
For each of the following functions f (x1 , x2 ), (1) Find the rst order condition for a maximum;
(2) Solve for x , x ; (3) Find the value of f (x , x ) i.e. the value of the functio
Economics 101
Problem Set 2 Answer Key
Due September 25, 2012
Please indicate your recitation time/number and recitation instructor on your answer.
1
Denitions and Reading Comprehension
For each of the following, write a short denition, in words (one sent
Economics 101
Recitation 3
1
Demand Functions and Quasilinear Utility
Suppose Meghan has quasilinear utility function
U (x1 , x2 ) = ln x1 + x2
over food (x1 ) and vacation spending (x2 ). She earns income Y and faces prices p1 , p2 .
1. Find Meghans opti
Economics 101
Homework 7.5
Not graded
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. Ecient production is a sucient condition for prot maximizat
Economics 101
Problem Set 7
Due November 29, 2012
Please indicate your recitation time/number and recitation instructor on your answer.
1
Denitions and Reading Comprehension
For each of the following, write a short denition, in words (one sentence). Then
Economics 101
Homework 6
Due October 22, 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. A risk averse consumer will buy actuarially unfair
Economics 101
Homework 7.5
Not graded
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. Ecient production is a sucient condition for prot maximizat
Economics 101
Homework 7
Due October 29, 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. If a rm has a diminishing marginal product of labor
Economics 101
Homework 8
Due November , 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. Suppose the market supply curve is a vertical line.
Economics 101
Homework 7
Due October 29, 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. If a rm has a diminishing marginal product of labor
Economics 101
Homework 9
Due November 26, 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. If a price oor is below the equilibrium price, the
Economics 101
Homework 9
Due November 26, 2013
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1
True or False (justify your answer)
1. If a price oor is below the equilibrium price, the
Economics 101
Math Practice Problems
Question 1: Properties of Functions
State the properties of the following functions (monotonic, concave or convex, continuous):
1. f (x) = x2
2. f (x) = 3x for x [0, 1] and f (x) = x + 3 for x (1, )
3. f (x) = lnx
Supp
Economics 101
Math Review Handout
1
Concepts
This is a list of the basic tools from calculus and mathematics that will be used throughout the
course. We will review the areas marked with an asterisk in lecture; please review the other
concepts independent
Economics 101
Math Practice Problems
Question 1: Properties of Functions
State the properties of the following functions (monotonic, concave or convex, continuous):
(1) f (x) = x2
(2) f (x) = 3x for x [0, 1] and f (x) = x + 3 for x (1, )
(3) f (x) = lnx
S
Economics 101
Problem Set 3
Due October 16, 2012
Please indicate your recitation time/number and recitation instructor on your answer.
1
Denitions and Reading Comprehension
For each of the following, write a short denition, in words (one sentence). Then w
Economics 101
Problem Set 6
Due November 21, 2012 at noon
Please indicate your recitation time/number and recitation instructor on your answer.
1
Denitions and Reading Comprehension
For each of the following, write a short denition, in words (one sentence
Economics 101
Recitation 6
Uncertainty
Consider the utility maximization problem in the context of a consumer choosing between uncertain consumption bundles, or lotteries. A lottery species the consumption in each state,
(V1 , ., Vn ), and the probability
Economics 101
Recitation 8
1
Cost Minimization
The cost minimization problem for the rm nds the combination of inputs that produces a given
quantity for the lowest cost. Given a desired quantity of output q and input prices, what is the lowest expenditure
3. Time, uncertainty and
assets
Inter-temporal choice and asset prices
Risk and uncertainty
Asset pricing under uncertainty
Inter-temporal choice
A consumer lives for two periods
Her endowment is
(1, 2)
Income in period 1
Income in period 2
The inte
Econ 551
Assignment 2 Solutions
Due: Thursday October 6, 2016, 5:00 pm
In this assignment, the "substitution effect" associated with a price change is the change in demand
for a good assuming the individual has just enough money to purchase the bundle she
Econ 551
Assignment 2
Due: Thursday October 6, 2016, 5:00 pm
In this assignment, the "substitution effect" associated with a price change is the change in demand
for a good assuming the individual has just enough money to purchase the bundle she originall
Econ 551
Assignment 1: Solutions
Due: Thursday, September 15, 2016, 5pm
1a. A consumer is considering how much to work (each week). She can work a maximum of 80 hours
per week. Each hour she doesnt work is an hour of leisure, l. For each hour she works, s
2. Consumer choice
Varian, Chapters 5, 6, (8) and 9
ECON 551: Microeconomics
Preferences and budget sets
At optimum,
-relative price = MRS
y
Indifference
curves
Budget line
x
Kinks
y
Here, the MRS is
not well defined
But this is still the
optimum
Budget l
0. Overview
Georgetown University
MA in Applied Economics
Econ 551: Microeconomics
Why study (micro)economics?
People are interesting
We are all more or less the same, but some groups are
very different to others
E.g., nations, cultures, genders, races