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 substitutibn effects for special util
ity functions such as p
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 market demand curve
PRICE
DEMAND CURVE
D(p)
QUANTITY
It i
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 level.
(a) If p1 doubles and p2 falls by half, what is the
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 from these two equations. His bud
get Constraint can be w
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 agents and stable prefere
nces
Bundle
x is strictly prefer
#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 F
32.3 (0) Dean Foster Z. Interface and Professor J. Fe
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 a model.
Endogenous variables:
determined by forces de
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, We
have the equatim:
(p) ]fhc budget equation
0) S
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 the money?
(Hint: In each of the abov 33ers, we not
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 expressions for marginal utilities
Check the law of diminish
4
Constrained Optimisation
Production function & constrained optimisation.
Utility function & constrained optimisation.
The method of Lagrange multipliers.
Explaining the method of Lagrange multipliers.
A monopolist producing 2 goods.
A funny mathem
1
Partial Derivatives
Functions of several variables.
Partial derivatives.
Secondorder partial derivatives.
Small increments formula.
Implicit differentiation.
Elasticities of demand.
ME2 LECTURE 1.doc
Page 1 of 7
1 /1
Functions of several variabl
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 selection
as a hidden information problem.
Moral hazard
a
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"
X
Y
A'
A
W
E
O
B'
U
B
X
Y
A
W
E
F
O
D
C
B
X
Y
l2
A
l1
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 effect,
the shift gives
the income effect.
P103andp137
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.
Chapter 0
The source of all econom
ic problems is scarci
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. growers, then
in equilibrium it still must be that the
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? constant returns to scale?
_ increasing returns to scale?
(b
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
equations:
MU1 / p1 = MU2 / p2 and
p1 x1 + p2 x2 = m.
Fig
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 $.10 and paying the last r brother,
SCOOP: to bury the
Economics 2A (study guide)
What is the course about?

intermediate Microeconomics course

prepare for Honours in Economics

comprises intermediate Microeconomics and Introductory Mathematical
Economics
The main aims of this course are:

familiarise st
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 indicated in brackets
Students should answer ONE question
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 assessment
Students should answer ALL parts of the que
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 assessment
A perfectly competitive firm sells two goods. A
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 weighted as indicated in brackets
Students should answer a
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 questions from Section A
Students should answer each sec