ECN 100 Homework #1
(1)
Suppose you had to build a model of the best way to maintain a new Honda Civic.
What three principal variables would you choose to keep the car in excellent running
condition, e.g. change the oil every 10,000 miles, etc? Do you thi
Homework #2 - Dear ECN 100
Remember, the objective of these homework assignments is to get you to know and
appreciate basic micro-economic concepts. Im not going to flood you with problems,
but for the problems that I do give to you, I do want you to work
NAME: _
Final Exam Winter 2007 Economics 100 Professor Stevens
This exam is worth 100 points in total and contains 8 pages including this cover sheet. You have 2 hours to complete the exam. You may not use notes, books, calculators, or any other materials
Sample Midterm questions 1. Assume that the market for gasoline is perfectly competitive. a. The marginal cost of gasoline production declines due to a technological development. At the same time, a change in consumer tastes for driving results in a decre
Problem Set #6: Answer Key 1. a) Qd = 100 2P, Qs = 10 + P Thus equilibrium price and quantity is 100 2P = 10 + P 90 = 3P P = 30, Q = 40. Now, if a price floor is instituted at $35, Qd = 30, Qs = 35+10 = 45. Therefore, we have excess supply in the market o
ECN 100B Winter10
Problem Set5 Answer Key
by Nikki Yang
Q1 a. Isocost: wL+rK=TC Isoquant: F(C,K)=Q0
K Isocost 1
TC/r
E1 11
Isocost 0
E0 F(L,K)=Q0
TC/w
L
If r , we know (1) Isocost 0 Isocost 1 (2) We assume that firm willQ produce Q0 of cars, still E0 E1 (
Problem Set 4: Answer Key 1. (a) In order to derive the consumers demand curve, we can solve the utility maximizing problem of the consumer i.e.
Thus, we can construct the Lagrangian: Now, to solve for the demand functions of goods A and goods B, we need
Name:_
Midterm Exam Winter 2007, Economics 100
This exam is worth 100 points in total and contains 7 pages including this cover sheet. You have 1 hour and 15 minutes to complete the exam. You may not use notes, books, calculators, or any other materials.
Answers to Problem Set 8
1. We know that marginal revenue may be expressed as a function of the elasticity of demand:
MR P(1
1
).
We also know that a monopolist will produce where MR = MC. Combining these two facts gives us:
MC P (1
1
) . If the elastici
G l o j u (x^J)= t 2 9 x = -ffi o Fcfw_t* dUtx,g)= 1
' I
i
'
* t-dllg=T,1,
d9
=,
6) :d,uRS Y -_:'.-_ tx '
r
i
i
r
I
ruLqz
F cfw_RS= l.ttlx
I -L
_O
NO D6-\RS
! .4
b.;
, t\(1r,9)=*'af Trr,- X'*S- .-z
r
0*=
I
- x-z = -+
M Ug=-253=-+t
-+ d F \RS=^( -g) - -+ X
ECN 100B Problem Set 1 Q1 Qd=a-bP
4 = a 100b a = 44 2 b= 12 = a 80b 5
2 Qd=44- P 5 Q Q1 Q1 Q2 Q4 4 12 = = OR use PP P1 P2 P 100 100 80 1
5 P = 110 Q 2 P
A (4,100)
100
B (12, 80)
80
D Q 4 12
5 2 a. equation: P = 110 Q or Q = 44 P 2 5 b. slope: 5 2
No, slo
ECN 100B Winter10
Problem Set3 Answer Key
by Nikki Yang
Q1 a.
MU F MU C MRS U (F ,C) C1 F U (F ,C) F C MU F C 1 MU c F
b. PFF+PCC=I F+2C=200 Slope of budget line =
PF PC
1 2
C1 F
Slope of indifference curve = -MRS=
C1 1 F 2 F 2C 2 F 2C 200
F C
101 49.5
c.