ECONOMICS 111  Introductory Microeconomics (CDS)
Assignment 1
Due: May 28th, 2017 before 11:55 pm
No late assignments will be accepted
Assignments may be submitted individually or in a group of two to four members
Instructions:
1. Covers Chapters 1, 2, 3
Properties of the indirect utility function
Theorem 1 If u is continuous and strictly increasing, then v (p,y ) is
1. continuous;
2. homogeneous of degree 0 in (p,y ), i.e. v (tp,ty ) = v (p,y ) for any t > 0;
3. strictly increasing in y ;
4. decreasing i
Game Theory
A theory to help understand strategic situations.
Strategic situation: An individuals payo depends on
his/her own decision
decisions made by others.
Assume Individual Rationality :
A decisionmaker chooses the optimal action according to his
Consumer Theory
Goal: To examine consumer behavior
Plan: To derive demand function by studying
a model of utility maximization
with economic constraints
Preliminaries
Notations:
xi: quantity of good i
x = (x1, x2, , xn)T : consumption/commodity bund
Econ 310 Microeconomic Theory II
Solutions to Midterm Exam, Fall 2014
Solution 1 The utilitymax problem is
max min
x1 ; x2
h
1=4
1=4
x1 ; 2x2
i
s:t:
p1 x1 + p2 x2
y:
1=4
Following the usual arguments regarding the minutility function, it must be that x1
Econ 310 Microeconomic Theory II
Solutions to Midterm Exam
Fall 2010
Solution 1 (a) Note that the utility function is a CobbDouglas utility function. Thus
Mickys Marshallian demands are
x1 (p; y) =
y
2y
; x2 (p; y) =
:
3p1
3p2
[One can also derive these
GE in Production Economy
Model environment
Producers: J competitive rms
yj 2 Rn: production plan for rm j .
j
If yk < 0, the good k is an input.
j
If yk > 0, the good k is an output.
Each rm takes prices p
0 as given and maximizes prot:
j
(p) = max p yj
September 27, 2016
Lecture #5
Elasticity
Chapter 4
Basic Idea: Elasticity measures how much one variable responds to changes in
another variable.
Example: How demand for Da Lousy University falls if you raise tuition.
Elasticity: A numerical measure of t
October 31st, 2016
Lecture #9
Market Efficiency
Chapter 5
Recall, the allocation of resources refers to:
How much of each good is produced
Which producers produce it
Which consumers consume it
Welfare Economics
Welfare economics studies how the allocat
Consumer Behaviour
Chapter 6
Utility
Utility
A measure of relative levels of satisfaction consumers enjoy from
consumption of goods and services
Sometimes numerically quantified by a unit of happiness called a util"
Disadvantages of using utils
Cannot
September 21, 2016
Lecture #3
Supply and Demand
Chapter 3
1) What factors affect buyers demand for goods?
2) What factors affect sellers supply of goods?
3) How do supply and demand determine the price of a good and the quantity
sold?
4) How do changes in
September 14, 2016
Lecture #1 2
Economic Issues and Concepts
Chapter 1
1)
2)
3)
4)
5)
Principles of Economics
People face trade offs
Opportunity costs
Incentives matters
Marginal thinking
Trade creates value
People face trade offs Principle #1
Limited R
October 17th, 2016
Lecture 8
Price Control and Market Efficiency
Chapter 5
Equilibrium is determined by the forces of supply and demand.
A shortage (excess demand) will occur at prices below the equilibrium.
A surplus (excess supply) will occur at prices
Excess burden: Income tax

Does proportional income tax at rate t have excess burden!
In x y space tax shifts the budget line inward parallel
Like lump sum tax, there is no excess burden
Utility function burden
ev is the yellow line from e2 to g
c
wT
w(1
ECON 310
Microeconomic Theory II
Midterm Exam
Fall 2010
Queens University
Instructions:
1. The duration of the exam is 80 minutes. There are a total of 2 pages.
2. Calculators and cell phones are NOT allowed.
GOOD LUCK!
1. Micky maximizes utility by consu
Econ 310: Microeconomic Theory II
Queens University
Winter 2017
Time and Location:
Monday, 1:00pm  2:30pm; Wednesday, 11:30am  1:00pm; at Jerey 126.
Instructor: Professor Amy Sun
O ce: Dunning Hall 309; Phone: 6135332267
Email: [email protected]
C
ECON 310 Microeconomic Theory II
Midterm Exam, Winter 2008
Queens University
Instructions:
1. The duration of the exam is 80 minutes. There is a total of 2 pages.
2. Calculators and cell phones are NOT allowed.
3. If necessary, you may work on a subquest
ECON 310
Microeconomic Theory II
Midterm Exam
Fall 2014, Queens University
1. A consumer has income y and consumes 2 goods. The utility function is given by
h
i
1=4
1=4
U (x1 ; x2 ) = min x1 ; 2x2 :
(a) [10 points] Set up the utilitymaximization problem.
ECON 310
Microeconomic Theory II
Midterm Exam
Winter 2012, Queens University
1. A consumer consumes two goods, x1 and x2 , given
pprices p1 and p2 . The consumer
has an income y and utility function U (x1 ; x2 ) = min [x1 ; 2x2 ]:
(a) [15 points] Write do
Page 2 of 4 pages
1. [30 points] Consider a onegood economy with 100 identical consumers
and 40 identical rms. Each consumer is endowed with one unit of time. A
representative consumers utility function is u (x; r) = log A + log x + 2 log r,
where A > 0
Overview Video: https:/youtu.be/Tq_ZXmfiLI
Consumer Theory with BurkeyAcademy www.burkeyacademy.com
Hicksian (Compensated) Demand
Marshallian Demand
Max U(x,y)
Min B (Pxx+Pyy)
Pxx+Pyy= (or ,
)
s.t.
Mark L. Burkey
s.t.
U(x,y)=
(or =Uo)
Example: Min Pxx+
ECON 310
Microeconomic Theory II
Midterm Exam
Winter 2015, Queens University
1. A consumer maximizes utility by consuming two goods. The prices of goods are p1
and p2 . The income is y and the utility function is
U (x1 ; x2 ) = a ln x1 + b ln x2 ;
where a
ECON 310
Microeconomic Theory II
Midterm Exam
Winter 2014, Queens University
1. A consumer has income y and consumes 2 goods. The utility function is given by
h
i
1=4
1=4
U (x1 ; x2 ) = min x1 ; 16x2 :
(a) [10 points] Set up the utilitymaximization probl
Wednesday, Feb. 15
Efficient Components Pricing Rule (ECPR): A= P CI
Cost based rule: A=b
Speed Download
Upload
Capacity
Total Volume of Data
Throttling service provider blocking certain data
Net neutrality uniform pricing of data, independent of the serv
Econ 426 Exercise 1 Solutions
Kevin Andrew
February 8, 2017
1. See spreadsheet for regression results and graph.
a) See spreadsheet.
b) See spreadsheet for full results. The coefficient on the oil price is 0.3 and
is statistically significant. Oil prices
Government tend to abhor a policy action
In Canada, voters tend to like government & have a dislike for business
In the US, voters tend to dislike government & have a fondness for business
There is a lot of regulation in the US, but much more in Canada
Th
Wednesday, March 8, 2017
Competition Bureau Presentation
1. Why is competition important?
Maximizes the pie: i.e., leads to an economically efficient allocation of resources
(Fundamental Theorem of Welfare Economics)
Benefits consumers through lower price
Wireless Competition
Monday, April 3 2017
Auction Theory
Spectrum Management in Canada
Simultaneous multipleround ascending (SMRA) auctions have been the design most
often used in Canada to authorize the use of available spectrum by means of an auction
o
Monday, March 27
Airline Deregulation and Airline Economics
Airports heavily regulated
Mostly publically owned
Airline Business Models and Networks, Gillen D (2006)
FHA, CAB, IATA
PostWorld War II
Heavily regulated industry
o Airline could neither enter