Solution Guide to Problem Set 2
1. False, that is not the case for perfect complement or perfect substitute goods.
2. I have 10 cookies to divide between three friends. Assume all like cookies,
and view more cookies as a good thing. Explain whether each o
Problem Set 2
(Due at 11 am in class on 7/15/2013)
1. In the following question, state whether the statement presented is TRUE, FALSE
OR UNCERTAIN and briefly justify your answer. Note: no credit will be given for
answers without explanations.
If an indiv
Problem Set 1
(Due in class at 11 am on 7/8/2013)
1. The graph below represents the demand and supply curve for pizza.
a) Reproduce the graph, label the axes, and indicate the equilibrium price and
quantity if this is a perfectly competitive industry
Yonsei - YISS
Professor Ricard Gil
Carey Business School
Johns Hopkins University
Syllabus - Microeconomics
This is a course in microeconomics, equivalent to intermediate microeconomics level in
most universities and colleges. I
1. 1. Pedro has invested all of his wealth in a new car that is worth $10,000. There is a 20% chance that
the car will be in an accident and worth only $1,000. Pedro has a logarithmic utility function, and his
expected utility is U (x1 , x2 ) = 0.8 ln(x1
Solution Guide to Problem Set 1
P* and Q* are the price and quantity in equilibrium
b) If the price is above the equilibrium price, this means there is more units of
pizza supplied than demanded. In this case,
TA NAME AND SECTION
ECON 100A, WINTER 2006
THIS IS AN EXAM WITH 70 POINTS, ONE POINT PER MINUTE AVAILABLE.
READ FIRST THE EXAM AND USE YOUR TIME APPROPRIATELY.
Answer the following four (4) questions on the exam