Business 33001
Prof. Yoad She
Microeconomics
Problem Set 5
Due in class 7
Assignments can be submitted in groups of up to 5 students (submit 1 assignment for the entire group)
Provide a brief explanation for your answers
Clearly show all calculations a

Problem set 1
Microeconomics: 33001
Professor Alex Frankel
1. Suppose worldwide annual supply and demand for wheat are given by the following
equations:
QS = 300P 600
QD = 3600 300P
where P is the price of wheat in dollars per bushel, and Q is the quantit

Business 33001
Microeconomics
Prof. Yoad She
Problem Set 1
Due in class 2
Assignments can be submitted in groups of 5 students (submit 1 assignment for the entire group)
Provide a brief explanation for your answers
Clearly show all calculations and gra

PROBLEM SET 2
Microeconomics: 33001
Booth School of Business
Professor Seth Zimmerman
1. The rent control agency of Chicago has found that the aggregate demand for apartments,
measured in tens of thousands of apartments, is
QD = 160-8P
Price, which is the

Problem set 8
Microeconomics: 33001
Professor Alex Frankel
1. There are two types of people: tall and short. You are a monopoly retailer of high
end pastas, and you notice that tall people tend to be richer and willing to pay more
for pasta. Right now you

Problem set 6
Microeconomics: 33001
Professor Alex Frankel
1. The cost function C(Q) of a company producing Q units of output is given by the
following equation:
C(Q) = 100 + 20Q + 10Q2
(a) What are the marginal costs (M C) as a function of Q? Are margina

Problem set 3
Microeconomics: 33001
Professor Alex Frankel
1. Louis has stable preferences (the same every year) and consumes two goods, wine and
cheese. In 1994, the price of wine was $4/glass and the price of cheese was $2/ounce.
Louiss income was $60 a

Problem set 7
Microeconomics: 33001
Professor Alex Frankel
1. Cournot and Stackelberg Competition
Two firms are engaged in Cournot (simultaneous quantity) competition. Market-level
inverse demand is given by
P = 160 4Q
Firm 1 has constant marginal costs o

Problem set 2
Microeconomics: 33001
Professor Alex Frankel
1. The free market outcome is efficient. Explain very briefly (about a paragraph) what
that means, and why this is so.
2. TRUE, FALSE, OR UNCERTAIN (and why):
(a) Booth has decided to raise money

Problem set 5
Microeconomics: 33001
Professor Alex Frankel
1. Restaurants that own their own buildings dont have to pay rent, so they can charge
less for their food. Comment on this statement in the language of economic vs. accounting costs. Would you exp

Microeconomics
Microeconomics: Homework #1
1
HW 1
Microeconomics
HW 1
Problem 1
Solution:
a. The supply demand curve is shown in Figure 1.
Shortage
Figure 1: Supply Demand curve
b. The equilibrium price for wheat is
Pe = 3 and quantity is Qe =2700 .
c. If

33001 Microeconomics
Autumn 2016
Submitted by:
Sharanya R
33001 Microeconomics
Homework 2
Sharanya R
Problem 1.
(a) Qd = 160-8p and Qs = 70+7p
160-8Pe = 70+7Pe
Pe = $6 (in hundreds); Qe = 112
Price
20
Excess demand (total market)
Drop in quantty supplied

PROBLEM SET 8
Microeconomics: 33001
Booth School of Business
Professor Seth Zimmerman
1. There is a monopoly firm that faces the demand curve: P= 100(1-.01Q) and has a
constant marginal cost of production equal to $20. Find the equilibrium price and outpu

PROBLEM SET 3
Microeconomics: 33001
Booth School of Business
Professor Seth Zimmerman
1. Louis consumes two goods, wine and cheese. In 1994, the price of wine was $4/glass
and the price of cheese was $2/ounce. Louiss income was $60 and he bought 12 glasse

Microeconomics
Week 3
Seth Zimmerman
Booth School of Business
University of Chicago
Seth Zimmerman
(Chicago Booth)
Business 33001
1 / 48
Outline for today
Goal: understand how demand curves arise from preferences and
constraints.
What are preferences?
Bud

ELEMENTS OF ECONOMIC ANALYSIS 2 (H)
ECON 20110 (FALL 2016)
PROBLEM SET 6
DUE ON TUESDAY (11/22) IN CLASS
(1) Consider an exchange economy with two consumers and two goods. Suppose that
consumers share the same utility function ui (x1 , x2 ) xi1 xi2 , i =

ELEMENTS OF ECONOMIC ANALYSIS 2 (H)
ECON 20110 (FALL 2016)
PROBLEM SET 7
DUE ON TUESDAY (11/29) IN CLASS
(1) Consider the Robinson Crusoe model we discussed in class. Now suppose that Mr.
Crusoe is not alone on the island and that, in fact, his wife, Mrs.

Problem Set 7 Solution
ECON201 Element of Economic Analysis II (Honors)
Siying Cao
December 4, 2016
Question 1
(a) Consider the firms problem
max p(h1 + h2 ) w1 h1 w2 h2
h1 ,h2 0
Restrict the equilibrium to prices that are strictly positive. Normalize p t

ELEMENTS OF ECONOMIC ANALYSIS 2 (H)
ECON 20110 (FALL 2016)
PROBLEM SET 5
DUE ON THURSDAY (11/10) IN CLASS
(1) Consider an exchange economy with two consumers and two goods. Suppose that
consumers share the same utility function u (x1 , x2 ) = x1 x2 and ha

Problem Set 6 Solution
ECON201 Element of Economic Analysis II (Honors)
Siying Cao
December 4, 2016
Question 1
(a) From PS5, we know the core of this economy is
C(E) = cfw_x1 , x2 R2+ |x1 = (a, a), x2 = (4 a, 4 a), 2 a 4 6
which is the line connecting the

Problem Set 5 Solution
ECON201 Element of Economic Analysis II (Honors)
Siying Cao
November 11, 2016
Question 1
(a) See Figure 1 for illustration. Note that the total endowment in this economy is e1 =
e11 + e21 = 4, e2 = e12 + e22 = 4.
Figure 1: Edgeworth

Microeconomics
Microeconomics: Homework #3
1
HW 3
Microeconomics
HW 3
Problem 1
Solution:
a. The budget curves for 1994 and 1995 are shown in Figure 1. The two lines intersect at 10 glasses
of wine and 10 oz. of cheese.
Figure 1: Budget curves
b. MRS of w

Microeconomics
Microeconomics: Homework #2
1
HW 2
Microeconomics
HW 2
Problem 1
Solution:
a. The equilibrium price is given by:
1608 Pe =70+ 7 P e
Pe =
90
=6
15
Qe =1608 P e=112
Figure 1 shows the supply demand curve
Figure 1: Apartment supply demand
If t

Microeconomics
Microeconomics: Homework #5
1
HW 5
Microeconomics
HW 5
Problem 1
Solution:
S IT =$ 50,000
Rb=$ 24,000
S own=$ 40,000
Explicit cost of the software business
C explicit =S own + E own+ Cown
$ 65,000
Opportunity cost of starting the new busin

Data Exercise & Problem Set Guidelines
There is one basic guideline for working on problem sets and data exercises. Problem set
and data exercise answers should reflect your individual work and the work of your
group. I am not interested in how well your

Lecture 4
Perfect Competition
Microeconomics B33001
University of Chicago
Booth School of Business
Yoad She
University of Chicago, Booth School of Business
http:/faculty.chicagobooth.edu/yoad.shefi/
October 19, 2015
Yoad She (Chicago Booth)
Lecture 4 Perf

Lecture 5
Efciency and Regulation of Markets
Microeconomics B33001
University of Chicago
Booth School of Business
Yoad She
University of Chicago, Booth School of Business
http:/faculty.chicagobooth.edu/yoad.shefi/
October 26, 2015
Yoad She (Chicago Booth)

Lecture 6
Market Failure I - Public Goods
Microeconomics B33001
University of Chicago
Booth School of Business
Yoad She
University of Chicago, Booth School of Business
http:/faculty.chicagobooth.edu/yoad.shefi/
November 2, 2015
Yoad She (Chicago Booth)
Le

Lecture 3
Theory of the Firm
Microeconomics B33001
University of Chicago
Booth School of Business
Yoad She
University of Chicago, Booth School of Business
http:/faculty.chicagobooth.edu/yoad.shefi/
October 12, 2015
Yoad She (Chicago Booth)
Lecture 3 Theor

Lecture 1
Introduction
Microeconomics B33001
University of Chicago
Booth School of Business
Yoad She
University of Chicago, Booth School of Business
http:/faculty.chicagobooth.edu/yoad.shefi/
September 22, 2015
Yoad She (Chicago Booth)
Lecture 1 Introduct