Econ 200 Problem Set 3
Due: October 22, 2013
Autumn 2013
Instructor: Avigail Kifer
TA: Heung Jin Kwon
Question 1: Short Questions
(a) A consumer with concave indierence curves between goods X and Y will always specialize in
consuming either X or Y . Do yo
Econ 200 Problem Set 1
Due: October 8, 2013
Autumn 2013
Instructor: Avigail Kifer
TA: Heung Jin Kwon
Question 1: Partial Derivatives
Calculate the partial derivatives
@f (x,y)
@x
and
@f (x,y)
@y
for the following functions:
(a) f (x, y) = log(x) + log(y)
Economics 200: Elements of Economic Analysis
Revealed Preferences and Price Indices
Avigail Kifer
Autumn 2013
1 Own Price Elasticity
The demand function1 that I gave you in class,
xm (px , py , m) =
m
2px + py
is one that you might encounter when working
Econ 200 Problem Set 4
Due: October 29, 2013
Autumn 2013
Instructor: Avigail Kifer
TA: Heung Jin Kwon
Question 1
True, False, or Uncertain? Give concise but complete explanations, no u. Back up statements with
economics and / or math.
(a) If a good is a n
Econ 200 Problem Set 4 Solutions
Heung Jin Kwon
Question 1
True, False, or Uncertain? Give concise but complete explanations, no flu. Back up statements with
economics and / or math.
(a) If a good is a normal good, then the demand function must have a neg
Economics 200: Elements of Economic Analysis
Utility Maximization / Expenditure Minimization
Avigail Kifer
Autumn 2013
1 Consumers Utility Max Problem
max U (x, y)
cfw_x,y
s.t. px x + py y = m
Optimality Condition:
Solutions:
x, y 0
Ux
px
=
Uy
py
xm (px ,
Econ 200 Problem Set 1: Solutions
Heung Jin Kwon
Question 1: Partial Derivatives
(x,y)
Calculate the partial derivatives @f@x and
(a) f (x, y) = log(x) + log(y)
We obtain partial derivatives as follows:
@f (x,y)
@y
for the following functions:
@f (x, y)
1
Econ 200 Problem Set 1: Solutions
Heung Jin Kwon
Question 1: Preferences
In this picture, I have drawn a sequence of indierence curves.
(a) Which preference axiom is violated?
Convexity is violated. Consider the following gure.
Figure 1: In order to have
Econ 200 Problem Set 2
Due: October 15, 2013
Autumn 2013
Instructor: Avigail Kifer
TA: Heung Jin Kwon
Question 1: Preferences
In this picture, I have drawn a sequence of indierence curves.
(a) Which preference axiom is violated?
(b) Given an arbitrary inc
Econ 200 Problem Set 3 Solutions
Heung Jin Kwon1
Question 1: Short Questions
(a) A consumer with concave indierence curves between goods X and Y will always specialize in consuming either X or Y . Do you agree? Why or why not? (Keep your answer as mathema
Economics 200: Elements of Economic Analysis
Optimization Review
Avigail Kifer
Autumn 2013
1 Multivariate Optimization
Given z = f (x, y):
First order conditions give us a critical point, which indicates that the function has stopped increasing or decreas