Problem Set 2
1) The price elasticity of demand for a good is the response of
A)
B)
C)
D)
E)
demand to a one percent change in price of that good
demand to a one percent change in price of the related
Problem Set 4
Use the following to answer questions 1-4:
P
14
12
10
8
6
4
2
50
150
250
350
Q
1) What is the seller's reservation price when producing 250 units?
A) $2 B) $4 C) $6 D) $8 E) $14
2) If th
Questions on Game Theory
Use the following to answer questions 1-4:
U p
D ow n
P la y e r A
P la y e r B
L e ft
R ig h t
3 0 fo r B 5 fo r A
1 2 fo r B 1 0 fo r A
1 0 fo r B -2 fo r A
1 5 fo r B 8 fo
Problem Set 7
1) Suppose a competitive firm and a monopolist are both charging $5 for their respective outputs.
One can infer that
A) marginal revenue is $5 for both firms.
B) marginal revenue is $5 f
Problem Set 1
Supply and Demand: Chapter 3
ECO 2023
1) The law of demand states that consumers
A)
B)
C)
D)
E)
tend to purchase more of a good as its price rises.
purchase name brand products more freq
Problem Set 3
1) Utility maximization means that people try to allocate their _ to maximize their
_.
A) utility, spending
power
B) income, satisfaction
C) time, work
D) emanating electric waves, brain
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 1 Solution.
I generally write more than was expected of you to get a full credit.
1. Which tax is the largest source of the fede
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 2 Solution.
1. (1 point) Name two properties that a good must satisfy to be classified as public
good. Also give at least two ex
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 3 solution.
1. (4 points) Consider a group of college roommates considering throwing a party.
The marginal benefit to hosts and
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 4 solution.
1. (2 points) Consider the following net benefits (measured in billions of dollars)
that will result from the passag
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 5 solution.
1. (6 points) Wayne is maximizing his utility by choosing how many hours to work a
week. His preferences for leisure
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 6 solution.
1. (2 points) In class we discussed two possible explanations of the fact that college
graduates make substantially
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 7 solution.
1. (1 point) (problem 3 on page 214) In 1990, the ratio of people age 65 or older to
people ages 20 to 64 in the Uni
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 8 solution.
1. (5 points) Consider a monopolist who has a total cost curve of C=5Q+0.5Q2 (the
corresponding marginal cost functi
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 9 solution.
1. (3 points) Ashley divides her working time between home production and market
production. The Value of marginal P
Econ 344 Public Finance
Dzmitry Asinski
Spring 2005
Homework Assignment 10 solution.
1. (1 point) Assume that the demand equation is given by P= 99 3Q. If the
original price of the good was $9 and a $