Liberal Arts and Professional Studies
Department of Economics
Course: AP Econ 1530 3.0 A/B/F: Introductory Mathematics for Economists I
Course Webpage: http:/moodle.yorku.ca
Term: Fall 2013
Lecture Ti
YORK UNIVERSITY
Faculty of Liberal Arts and Professional Studies
Economics 2300 B: Barry Smith
Final Exam: December 23, 2013
NAME:
STUDENT NUMBER
Instructions. The exam consists of 3 parts: A, B and C
Chapter 5
Choice
Economic Rationality
The principal behavioral postulate is
that a decisionmaker chooses its
most preferred alternative from those
available to it.
The available choices constitute th
Chapter 19
Technology
Technologies
A technology is a process by which
inputs are converted to an output.
E.g. labor, a computer, a projector,
electricity, and software are being
combined to produce t
Chapter 21
Cost
Minimization
Cost Minimization
A firm is a cost-minimizer if it
produces any given output level y
0 at smallest possible total cost.
c(y) denotes the firms smallest
possible total co
Chapter 20
Profit
Maximization
Economic Profit
A firm uses inputs j = 1,m to make
products i = 1,n.
Output levels are y1,yn.
Input levels are x1,xm.
Product prices are p1,pn.
Input prices are w1,wm.
Chapter 16
Equilibrium
Market Equilibrium
A market is in equilibrium when total
quantity demanded by buyers equals
total quantity supplied by sellers.
Market Equilibrium
Market
p
demand
q=D(p)
D(p)
Ma
Chapter 14
Consumers
Surplus
Monetary Measures of Gains-toTrade
You can buy as much gasoline as
you wish at $1 per gallon once you
enter the gasoline market.
Q: What is the most you would pay
to ente
Chapter 15
Market Demand
From Individual to Market
Demand Functions
Think of an economy containing n
consumers, denoted by i = 1, ,n.
Consumer is ordinary demand
function for commodity j is
x*i (p1 ,
Chapter 6
Demand
Properties of Demand Functions
Comparative statics analysis of
ordinary demand functions - the
study of how ordinary demands
x1*(p1,p2,y) and x2*(p1,p2,y) change as
prices p1, p2 and
Chapter 2
Budget
Constraint
Consumption Choice Sets
A consumption choice set is the
collection of all consumption
choices available to the consumer.
What constrains consumption
choice?
Budgetary, ti
Chapter 4
Utility
Preferences - A Reminder
p
x y: x is preferred strictly to y.
x y: x and y are equally preferred.
x f y: x is preferred at least as
~
much as is y.
Preferences - A Reminder
Complet
Chapter 3
Preferences
Rationality in Economics
Behavioral Postulate:
A decisionmaker always chooses its
most preferred alternative from its
set of available alternatives.
So to model choice we must m
Chapter 8
Slutsky
Equation
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
relat