Demand
(Varian, ch.6; Serrano and Feldman,
ch.4)
Demand functions
(x*,y*) optimal bundle for a consumer
with utility function u(x,y), income m,
prices px and py
As px, py and m change, (x*,y*) changes too
x*(px,py,m), y*(px,py,m) demand functions
(show ho
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter 11: Applied Competitive Analysis
In this chapter, we will do some fun stuff with supply and demand and competitive
analysis.
There is one potentially important caveat offered at
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Brief Answers to Practice Midterm Exam
Problem 1
Consumer As preferences for pens (x) and paper (y) are described by the utility fun
Budget Constraint
(Varian, ch.2; Serrano and Feldman,
ch.3)
Consumption choice set
A consumption choice set is the collection
of all consumption choices available to the
consumer
What constrains consumption choice?
Budgetary, time and other resource
limi
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Brief Answers to Additional Practice Problems
Problem 1
16 3p, if p 3;
(a) (i) x =
10 p, if 3 < p 10;
0, if p > 10
10 x, if x 7;
1
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Problem Set #5
Due Wednesday, November 26, in class
Problem 1
Consider the rm that uses one input, x. In order to produce y units of
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Problem Set #3
Due Wednesday, October 22, in class
Problem 1
Consider the following consumers:
(a) A consumer with the utility funct
Utility Functions
(Varian, ch.4; Serrano and Feldman,
ch.2)
Preferences - a reminder
p
p
p
p
x y: x is preferred strictly to y
x ~ y: x and y are equally preferred
x f y: x is weakly preferred to y
~
Preferences - a reminder
3
Preferences - a reminder
4
P
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Problem Set #1
Due Wednesday, September 24, in class
Problem 1 (based on question 3.15 in Bergstrom and Varian)
Consumer A consumes
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Problem Set #2
Due Wednesday, October 1, in class
Problem 1
For each of the following consumers, write down the equation for the bud
Cost Functions and Cost Curves
(Varian, ch.22; Serrano and Feldman, ch.8-10)
The Short-Run Cost
Minimization Problem
Take the output level y 0 as given
x2 is fixed at x2
For given w1, w2 and y, the firms costminimization problem is to solve
min w1 x1 + w2
Income and Substitution Effects
(Varian, ch.8; Serrano and Feldman, ch.4)
Effects of a Price Change
What happens when a commoditys price
decreases?
Substitution effect: the commodity is
relatively cheaper, so consumers
substitute it for now relatively mo
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Brief Answers to Practice Midterm Exam
1 hour 30 minutes, 100 points total
ANSWERS WITHOUT EXPLANATIONS WILL NOT BE GIVEN FULL CREDI
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Problem Set #5 Brief Answers
Problem 1
(a) T C(y) = 2(y 1)2 + 2, AC(y) = (2(y 1)2 + 2)/y, M C(y) = 4(y 1)
(b) The shutdown point is
Revealed Preference
(Varian, ch.7;
Serrano and Feldman, appendix to ch.6)
Revealed Preference Analysis
Suppose
we observe the demands
(consumption choices) that a consumer makes
for different budgets.
This reveals information about the
consumers preferenc
A Calculus Derivation of the Slutsky Equation
Intermediate Micro 1, Economics 2260A
Charles Z. Zheng
University of Western Ontario
November 11, 2016
The Question
1. How does a consumers demand for a commodity change if its price
changes?
2. More precisely
Ec 2260A
Unversity of Western Ontario
Intermediate Microeconomics I
Department of Economics
Prof. Maria Goltsman
Fall 2014
Brief Answers to Make-up Midterm Exam
1 hour 30 minutes, 100 points total
ANSWERS WITHOUT EXPLANATIONS WILL NOT BE GIVEN FULL CREDIT
Economics 3070
Fall 2014
Problem Set 2 Solutions
1. Graph a typical indifference curve for the following utility functions and
determine whether they obey the assumption of diminishing MRS:
a. U(x, y) = 3x + y
y
3
Slope = -3
U =3
1
x
Since the indifferenc
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter 8: Cost Functions
This chapter investigates the relationship between a production function and the cost of
producing given quantities of output, assuming that a firm minimizes i
EC 352: Intermediate Microeconomics, Lecture 10
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter Ten: The Partial Equilibrium Competitive Model
This chapter will investigate perfect competition in the short run and in the long
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter 15: Game Theory Models of Pricing
The book goes through a lot of this stuff in a more technical sense. Ill try to be plain and
clear about it.
The Basics
1. Players
Players are
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter 13: Models of Monopoly
Monopoly literally means one seller. The discussion in this chapter would be
appropriate to situations where there was literally one seller of a particula
Economics 352: Intermediate Microeconomics
Notes and Sample Questions
Chapter 14: Traditional Models of Imperfect Competition
Thus far, we have discussed two extreme market types: perfect competition and
monopoly. Most real world markets lie somewhere bet
GAMES AND DECISIONS
Introduction and Critical Survey
R. DUNCAN LUCE
University of California at Irvine
HOWARD RAIFFA
Harvard Business School
DOVER PUBLICATIONS, INC., NEW YORK TWO-PERSON
ZERO-SLIM GAMES
4.1 INTRODUCTION
Two-person games play a central rol
An example of revealed preference analysis
An example of revealed preference analysis
An example of revealed preference analysis
An example of revealed preference analysis
An example of revealed preference analysis
An example of revealed preference analys