Solutions: Assignment 3
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
1. MWG. Exercise 2.D.1.
Solution. In each period, the consumption set is R+ . For t = 1, 2, let xt and pt denote
consumption and prices in period t, respectively. Hence
Bp,
Solutions: Assignment 2
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
1. MWG Question 6.B.1.
Solution. Suppose that preferences
(0, 1) and L, L , L L.
over L satisfy the independence axiom. Fix any
First, show that L L if and only if L+(1)L
Adv. Micro Theory, ECON 6202-090
Assignment 2 Answers, Fall 2010
Due: Monday, September 27th
Directions: Answer each question as completely as possible. You may work in a group consisting of up
to 3 members for each group please turn in only 1 set of answ
Solutions: Midterm Exam
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
A correct answer must include a correct explanation. Please be as precise as you can.
1. (10) Assume that the set of alternatives is X = R2 . Dene the lexicographic prefere
Solutions: Assignment 1
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
1. Let
be a rational preference relation on a set of alternatives X. Show that the strict
preference relation
is irreexive (for any x X, x
x never holds), transitive and
an
Solutions: Assignment 4
ECON 601 Micro I
Jean Guillaume Forand
Fall 2012, Waterloo
1. Consider the following game in normal form.
A
B
C
X
3, 2
1, 3
4, 0
Y
2, 2
3, 2
0, 2
Z
4, 3
1, 4
1, 1
(a) Do any players have strategies that are either strictly or weakl
Solutions: Assignment 3
ECON 601 Micro I
Jean Guillaume Forand
Fall 2012, Waterloo
1. MWG. Exercise 2.D.1.
Solution. In each period, the consumption set is R+ . For t = 1, 2, let xt and pt denote
consumption and prices in period t, respectively. Hence
Bp,
Solutions: Assignment 1
ECON 601 Micro I
Jean Guillaume Forand
Fall 2012, Waterloo
1. Let
be a rational preference relation on a set of alternatives X. Show that the strict
preference relation
is irreexive (for any x X, x
x never holds), transitive and
an
Solutions: Assignment 1
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
1. Let
be a rational preference relation on a set of alternatives X. Show that the strict
preference relation
is irreexive (for any x X, x
x never holds), transitive and
an
Solutions: Assignment 4
ECON 601 Micro I
Jean Guillaume Forand
Fall 2011, Waterloo
1. A pitcher and a batter face o in a baseball game. The count is currently full, that is, the
batter has three balls and two strikes against him. The pitcher must decide w
Problem Set IV: UMP, EMP, indirect utility, expenditure
Paolo Crosetto
paolo.crosetto@unimi.it
February 22nd, 2010
Recap: indirect utility and marshallian demand
The indirect utility function is the value function of the UMP:
v( p, w) = max u( x ) s.t. p