ECON 2101/2210
William Chan
Problem Set 5
(October 28, 2013)
1. Explain whether the following statements are True or False:
a. A consumer spends his income on 2 commodities, X and Y. When X costs $3 each and Y
costs $10 each, he consumes 30 units of X and
ECON 2101/2210
William Chan
Problem Set 3
(Due September 30, 2013)
1.
No. 3 in Problem Set 2.
2.
Explain whether the following statements are True or False:
a.
In a world with two commodities, x and y, if x is inferior, then it must be a gross
complement
ECON 2101/2210
William Chan
Problem Set 8
(Due November 18, 2013)
1. Explain whether the following statement is True or False: At a bank on campus, the queue for
services can get quite long during peak hours. However, for a few hundred dollars a year, a
c
ECON 2101/2210
William Chan
Problem Set 7
(Due November 11, 2013)
1.
Evaluate and explain whether the following statements are True or False.
a.
A monopolist with constant marginal costs faces a demand curve with a constant elasticity
of demand and does n
Microeconomic theory
Econ2101/Econ2210
Midterm Examination Fall 2013
You are NOT allowed to use class notes, textbooks or any reference related
with the course materials. The use of calculator is OK. Please write legibly. Read the
questions carefully and
CHAPTER 7
Uncertainty and Information
Most of the problems in this chapter focus on illustrating the concept of risk aversion.
That is, they assume that individuals have concave utility of wealth functions and
therefore dislike variance in their wealth. F
CHAPTER 4
UTILITY MAXIMIZATION AND CHOICE
The problems in this chapter focus mainly on the utility maximization assumption. Relatively simple computational problems (mainly based on CobbDouglas and CES utility functions) are included. Comparative statics
CHAPTER 3
PREFERENCES AND UTILITY
These problems provide some practice in examining utility functions by looking at indifference curve maps and at a few functional forms. The primary focus is on illustrating the notion of quasiconcavity (a diminishing MR
CHAPTER 5
INCOME AND SUBSTITUTION EFFECTS
Problems in this chapter focus on comparative statics analyses of income and ownprice changes. Many of the problems are fairly easy so that students can approach the ideas involved in shifting budget constraints
CHAPTER 2
MATHEMATICS FOR MICROECONOMICS
The problems in this chapter are primarily mathematical. They are intended to give students
some practice with the concepts introduced in Chapter 2, but the problems in themselves offer
few economic insights. Conse
CHAPTER 6
DEMAND RELATIONSHIPS AMONG GOODS
Two types of demand relationships are stressed in the problems to Chapter 6: crossprice
effects and composite commodity results. The general goal of these problems is to
illustrate how the demand for one particu
Microeconomic Theory
ECON2101/ECON2210
Bei Qin
1 / 49
The theory of the rm: production and cost
2 / 49
The goal of rms?
3 / 49
The goal of rms?
Prot Maximizing
Prot=market value of products  cost :
= p y (x1 , x2 , .xn ) C (y (x1 , x2 , .xn )
Firms' c
Microeconomic theory
Econ2101/Econ2210
Solution for Midterm Examination Fall 2013
Part 1. Multiple choice (There can be more than one choice.)
1.1 D
1.2 A
1.3 A
1.4 CF
1.5 E
1.6 E
1.7 A
1.8 B
1.9 A
1.10 D
1.11 D
Part 2. Short answer questions (38 points)
CHAPTER 10
COST FUNCTIONS
The problems in this chapter focus mainly on the relationship between production and cost functions. Most of the examples developed are based on the CobbDouglas function (or its CES generalization) although a few of the easier o
CHAPTER 8
STRATEGY AND GAME THEORY
These problems cover a variety of different concepts introduced in the chapter. They range in difficulty from the simplest exercise of finding the Nash equilibrium in a twobytwo matrix to characterizing equilibrium when
Macroeconomic Analysis
Econ 6022
Lecture 8
Fall, 2015
1 / 22
Overview
Last week, we studied the governments optimal fiscal
policy, or how government interacts with households in
private sector.
This week, we studied another important player in public
se
CHAPTER 17
CAPITAL AND TIME
The problems in this chapter are of two general types: (1) those that focus on
intertemporal maximization and (2) those that ask students to make fairly simple present
discounted value calculations. Before undertaking any of th
CHAPTER 19
EXTERNALITIES AND PUBLIC GOODS
The problems in this chapter illustrate how externalities in consumption or production
can affect the optimal allocation of resources and, in some cases, describe the remedial
action that may be appropriate. Many
CHAPTER 18
Asymmetric Information
Most of the problems in this chapter focus on different applications of the principalagent
model. Additional problems are provided on auctions and the lemons problem.
Problem 18.5 requires the solution to a complicated m
CHAPTER 14
MONOPOLY
The problems in this chapter deal primarily with marginal revenuemarginal cost calculations in different contexts. For such problems, students' primary difficulty is to remember that the marginal revenue concept requires differentiati
CHAPTER 16
LABOR MARKETS
Because the subject of labor demand was extensively treated in Chapter 11, the problems
in this chapter focus primarily on labor supply and on equilibrium in the labor market.
Most of the labor supply problems (16.116.3) start wit
CHAPTER 13
GENERAL EQUILIBRIUM AND WELFARE
The problems in this chapter focus primarily on the simple twogood general equilibrium
model in which supply is represented by the production possibility frontier and
demand by a set of indifference curves. The
CHAPTER 12
THE PARTIAL EQUILIBRIUM COMPETITIVE MODEL
The problems in this chapter focus on competitive supply behavior in both the short and long runs. For shortrun analysis, students are usually asked to construct the industry supply curve (by summing f
CHAPTER 15
Imperfect Competition
The problems in this chapter provide the student with some practice with many of the different models of imperfect competition introduced in the text. Space considerations forced us to omit problems on search, advertising,
CHAPTER 11
PROFIT MAXIMIZATION
Problems in this chapter consist mainly of applications of the P = MC rule for profit maximization by a pricetaking firm and some examination of the firms derived demand for inputs. A few of the problems (13.213.5) ask stu
CHAPTER 9
PRODUCTION FUNCTIONS
Because the problems in this chapter do not involve optimization (cost minimization principles are not presented until Chapter 9) they tend to have a rather uninteresting focus on functional form. Computation of marginal and
Macroeconomic Analysis
Econ 6022
Lecture 4
Fall, 2015
1 / 63
Overview
What is a Business Cycle?
Business Cycle Facts
A framework for analysis of business cycles
2 / 63
Cycles and Growth in the U.S.
3 / 63
Stylized Business Cycles
4 / 63
Trend vs. Cycle

Income elasticity of demand
M/X * dX/dM
Price elasticity of demand
dX/dPx * Px/X
 If we are required to find the demand function use MU1/MU2=P1/P2 to
represent the function
 To know if the MRTS is diminishing dMRTS/dL >0
 To find the LR and SR averag
ECON2101/2210 Microeconomic Theory
Q1:
MaxU = XY s . t . I =P X X + PY Y
(a) What is the equilibrium amount of consumption of X and Y?
(b) What is the price elasticity of demand and income elasticity of demand for X?
Q2:
Maurice has the following utility