For the following, please answer "True" or "False" and explain why.
1) Indifference curves on the same indifference map can have different shapes.
2) When the price of beef rises, consumers switch consumption
Wednesday, Sep 16, 2013 1:00pm - 2:00pm
Please answer "True" or "False" and explain why. (10 pts)
The quantity of a good that consumers demand depends only on the price of the good.
Suppose the market for potatoes can be expressed as follo
1) Please answer "True" or "False" and explain why. The length of the short-run is the
same for all firms.
2) Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y +
Midterm I (version one)
1) Please answer True or False and explain why. (10 points)
Consumer surplus from a given purchase is the difference between what one was willing to pay
for that purchase and what was actually paid.
2) The demand curve for Widgets
About this part of the course
School of Humanities and Social Sciences
Law of One Price
Arbitrage/Law of One Price illustration: Put-Call parity