Zenginobuz/EC 501
Fall 2012
Problem Set 1
(due Thursday, Oct 11, 2012)
1. Prove the following statements about preference relations:
(a) If
is transitive, then
is also transitive.
(b) If
is transitive
m amm 5/ Ev? 1 gm W) A M Q
:2 k $9 m L. m gag
per$%j LWQEaJNQ m9! Ea t3 6*? cm %kaf&:wi
5.5%?in WMQMSQA :39? Slk
G'Gwifmmz t
cms 3% Mwht gm gjt wgfk, wk i i E); r a; i; rgsm 3%
hawnwm Emgxwa QMW
Economics 501B: 2015 Exercise Set #5
1. There are two goods; denote their quantities by x and y. Amys endowment bundle (
x,
y ) has
a strictly positive amount of at least one of the goods, and she ha
15.3.7 Show that if both consumers in an Edgeworth box economy have continuous, strongly
monotone. and strictly convex preferences, then the Pareto set has no holes": precisely, it is
a connected set.
Economics 201b
Spring 2010
Problem Set 4
Due Thursday April 15
1. Robinson-Crusoe in U.S.S.R. Consider a Robinson-Crusoe economy with
two-goods, one consumer and one firm. Firm is labor-oriented: it m
Economics 201b
Spring 2010
Problem Set 6
Due Thursday April 29
1. There are many foreign embassies in the Washington, DC. In fact, there is an
area of the city where quite a few of them are very close
EC501 Part 2 PS 1
1) There are two goods (x1 and x2 ) and two people (Al and Bill) in the economy. Al owns eight units of the x1
and none of the x2 . Bill owns none of the x1 , and three units of the
Economics 201b
Spring 2010
Problem Set 2
Due Thursday April 1
1. Competitive Equilibrium(-a) When Preferences Are Kinked. Recently
there have been a surge in decision theory models that are non-differ
i
w
w.
w
a
!
1.1125
52.92% tram. vwéikx; m: wavy-n54“
3:
x3 Wu
W4 “*2 ,
up“ w ,_ %‘ A? V
w mg, g?
5 9
h x;
:
3 “gm. 3
a g h a {f
‘ u "k"
,» ~
“Rim. » ”WW“,
I
“mu“ m
a
m
m
x ._ _ N L4 K, . /I , ,
N G w \Q \t‘ g "\Lc1\;_,{ d\ 33 Q Q\¥ (Avg) 0 C ﬁl>:"\3\ am ﬂ 7 Q
I CJK
\ W J ”1 OK
4 4 x p _ ‘
J } ’ " é “““ ) ’ "2:04!“ \& r ”E‘" 5k “5:1“; 3 1 f-"UFC: Win/M CA W ow“? Law
EC 501/Zenginobuz
Fall 2012
Problem Set #3
Due October 18, 2012
1. Define the Marshallian demand function and show that it is homogeneous of degree 0.
2.
a. Define the expenditure function.
b. Hold u
EC 501/Zenginobuz
Fall 2012
Problem Set #4
Due October 30, 2012
1) A consumer with income w0 faces prices p0 and enjoys utility u0 = v(p0, w0). When prices
change to p1, the cost of living is affected
EC 501/Zenginobuz
Fall 2012
Problem Set #6
Due November 15, 2012
(Solutions to be turned in on Nov 20, 2012)
1) Jehle and Reny, Exercise 2.14.
2) Jehle & Reny: Exercise 2.15
3) Jehle & Reny: Exercise
EC 501/Zenginobuz
Fall 2012
Study Questions on Production Theory
1. TRUE OR FALSE. Explain
a) A production isoquant is a locus of combinations of inputs that are equally profitable.
b) If the producti
EC 501/Zenginobuz
Fall 2012
Problem Set #7
Due December 4, 2012
1. Jehle & Reny: Exercise 2.25
2. Jehle & Reny: Exercise 2.28
3. Suppose an agent has von Neumann - Morgenstern preferences over money l
EC 501/Zenginobuz
Fall 2012
Problem Set #11
(Not to be turned in)
1. In an economy with two people and two goods, suppose
u1(x1) = 3x11+2x12
u2(x2) = x21 x22
w1=(l0,9)
w2=(0,l)
a) Draw an Edgeworth bo