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 2
Due: Thursday October 8, 2015, 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 j
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
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
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
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
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 11 (the last one!)
Due December 10, 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 monopolist that engages in rst
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
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 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 1
Due September 10, 2012
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1. State whether the following are positive or normative statements:
(a) Soda is unhealthy
Economics 101
Homework 1
Due September 10, 2012
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1. State whether the following are positive or normative statements:
(a) Soda is unhealthy
Economics 101
Homework 10
Not Graded!
1
True or False (justify your answer)
1. Monopolists produce the same quantity as the competitive equilibrium market quantity, but
charge a higher price.
Solution:
False.
Monopolist not only charges a higher price, bu
Economics 101
Homework 2
Due September 17, 2012
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1. Andrew consumes hotdogs and hamburgers. He thinks that 4 hotdogs (good 1) is a perfect
Economics 101
Homework 2
Due September 17, 2012
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1. Andrew consumes hotdogs and hamburgers. He thinks that 4 hotdogs (good 1) is a perfect
Economics 101
Homework 3
Due September 24, 2012
Please indicate your recitation time/number and recitation instructor on your answer. Show all
work for full credit.
1. Jarrod has Cobb-Douglas preferences represented by utility function
1/3 2/3
U (x1 , x2
Economics 101
Homework 4
Due October 8, 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 leisure is an inferior good, then an increase in
Economics 101
Homework 4
Due October 8, 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 leisure is an inferior good, then an increase in
11. Asymmetric information
Adverse selection, Signaling, and
Moral Hazard
Markets and information
Our analysis of markets has assumed that
people know what they are buying/selling
When they do, then we might hope that
these markets will work well
What
4. Consumer surplus and
partial equilibrium
Welfare impact of price changes
Weve seen how individuals respond to
price changes
x(p,m)
Income and substitution effects
Ordinary versus Giffen goods
Etc.
How much do price rises/falls hurt/help
consumers
10. Introduction to game
theory
Interacting decisions
In most of our discussion of behavior,
weve looked at either
Individual actions e.g., consumer choice
Market interaction e.g., Edgeworth box, with
the help of the Walrasian auctioneer
In some cases
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