3
Unconstrained Optimisation
Types of stationary points.
A mathematical example.
Profit maximisation with 2 different goods.
Profit maximisation with 2 different markets.
Substitution method & output
98 SLUTSKYEQUATION (Ch. 8)
on an indifference curve diagram.
0 Show the Hicks income and substitution effects of a price change on "
an indifference curve diagram.
0 Find the Slutsky income and substi
Chapter 15
Market
Demand
One can think of the
market demand as the
demand of some
representative consumer.
Adding up demand curves:
The horizontal
summation principle.
+
=
Horizontal summatio
n
The ma
Assignment 1
ECON2001, Economics 2A  Micro
Dr. M Lombardi
1. The consumer orginal budget equation is p1 x1 +p2 x2 = m, where pi is the original price of item i = 1; 2
and m is the original income lev
161
NAME_
h can consume, contingent on the system not being approved, is QNA :
e .
(b) You can solve for Condors budget constraint on contingent commod
ity bundles (CA, C N A) by eliminating :5 fr
Chapter 3
* Prerequisite:
A binary relation R on X is said to be
Complete if xRy or yRx for any pair
of x and y in X;
Reflexive if xRx for any x in X;
Transitive if xRy and yRz imply xRz.
Rational age
#7
388 EXCHANGE (Ch. 32)
erring, what is
cfw_(1) Where the price of cheese is 1 and p is the
the value of Astrids initial and  ' ._._ . How much herring
Chapter 1
Economics proceeds by developing
Models of social phenomena.
By a model we mean a simplified r
epresentation of reality.
Exogenous variables:
taken as determined by factor
s not discussed in
IniwQL 1.
. A'".
_
NAME
I the ConlnlOdity bundle (X,Y), Claras marginal rate 0' nbstitu
cfw_(3,
tion is.  <  .,_ w _ u.
(d) If 9 50t tl'IO absolute vnlue of the MRS . 51.1 to the price ratio,
410 WELFARE (Ch. 34)
choose to divide the money?
(0) Suppose that her utility function is U (a, b) 2
she choose to divide the money?
(1) Suppose that her utility function is U (a
choose to divide
Mathematics for Economists  2
Tutorial 2:
(Attempt all questions before the tutorials. Be ready to explain your working.)
Question 1:
For a utility function U (x, y) = x2/3y4/5
a)
b)
c)
d)
Find expre
4
Constrained Optimisation
Production function & constrained optimisation.
Utility function & constrained optimisation.
The method of Lagrange multipliers.
Explaining the method of Lagrange multip
Chapter 35
Asymmetric
Information
Common knowledge
and
private information.
The latter leads to
Asymmetric information,
or
Asymmetry of
Akerlof model:
the market for lemons.
Density
Quality
Adverse se
Chapter 9
Buying and Selling
for a consumer with an
endowment
Y
A
XW
U
UW
W
E
Y
O
YW
X
B
X
Y
A'
U"
U'
U
A
W
A"
E'
E
E"
W'
W"
O
B"
B
B'
X
Y
U
A
XW
W
E
Y
W'
X'W
O
YW
X
Y'W
B
X
Y
A'
X
A
A"
O
W
B'
B
B"
Chapter 8
Slutsky Equation
How
the optimum moves
when the price of a good
changes?
Decomposition:
the
total effect =
the substitution effect
+ the income effect.
p139
The
pivot gives
the substitution
MICROECONOMICS
Classroom Lecture Notes
(3 credits, as of 2005)
based on Hal R. Varians
Intermediate Microeconomics,
Sixth Edition,
referring to Pindyck and Rubinfelds
Microeconomics,
Fourth Edition.
C
208 EQUILIBRIUM (Ch. 16)
(a) If there are no taxes or subsidies, what is the equilibrium  =.ntity?
What is the equilibrium market price?
(1) If a subsidy of 2 cents per pound is paid Gut1.118.113.
19.9 (0) Suppose that the production function is f(av1,m2) = Cmfmg,
Where a, b, and C are positive constants.
(a) For what positive values of a, b, and C are there decreasing returns
to scale? constan
Chapter 5
Choice of consumption
Optimal
choice is at the point
in the budget line with highest
utility.
The tangency solution of an
indifferent curve and the budget
line:
MRS = p1 / p2.
Fig.
Basic
equ
NAME
M smagher that nests $200 a year to own and than spending $1 cfw_0 very
G I bed into obliviou; the second method involves purchasi a shovel
cal 5513s  . .
that will last one year and costs
Economics 2A (study guide)
What is the course about?

intermediate Microeconomics course

prepare for Honours in Economics

comprises intermediate Microeconomics and Introductory Mathematical
Econo
1
Degree of MA (Social Sciences), MA, BAcc, LLB, BSc and BD
Economics 2A
Degree Examination
13:0015:00, Wednesday 5th December 2012
Instructions:
Time allowed: 2 hours
Each question is weighted as ind
1
Degree of MA (Social Sciences), MA, BAcc, LLB, BSc and BD
Economics 2A
Incourse Resit Examination
13:0014:00, Tuesday 20 July 2010
Instructions:
Time allowed: 1 hour
Exam accounts for 15% of the
1
Degree of MA (Social Sciences), MA, BAcc, LLB, BSc and BD
Economics 2A
Incourse Examination
13:0014:00, Tuesday 7 December 2010
Instructions:
Time allowed: 1 hour
Exam accounts for 15% of the ass
1
Degree of MA (Social Sciences), MA, BAcc, LLB, BSc and BD
Economics 2A (ECON2001)
Degree Examination
09:30  11:30, THURSDAY, 19 December 2013
Instructions:
Time allowed: 2 hours
Each section is wei
Degree of MA (Social Sciences), MA, BAcc, LLB, BSc and BD
Economics 2A
Degree Resit Examination
14:3016:30, Monday 6 August 2012
Instructions:
Time allowed: 2 hours
Students should answer any TWO qu