Lecture 1: Budget Constraints c 2008 Jerey A. Miron Outline 1. Introduction 2. Two Goods are Often Enough 3. Properties of the Budget Set 4. How the Budget Line Changes 5. The Numeraire 6. Taxes, Subsidies, Rationing
Our development of econ
Homework 7 Solutions
EC0 3101. U03
Last problem set of the semester!
0. Consider markets where both demand and supply are linear:
QD (P ) = a b P
QS (P ) = d P
where a, b, d > 0. Later, a tax is levied that requires the seller to pay an
Exam 2 Practice Solutions
EC0 3101. U03
Here are some supplemental practice problems to help you prepare for the perfect competition problems you could see on the exam.
1. Suppose the daily demand curve for mahi-mahi at the Port of Miam
Chapter 8 Competitive Firms and Markets
1) Economists define a market to be competitive when the firms (a) (b) (c) (d) spend large amounts of money on advertising to lure customers away from the competition. watch each others behavior clos
Extra Credit for Exam 2
A firm has production function Q = 70L where Q is the quantity of output and L is labor input (in hours).
The wage rate is $21 per hour. The capital rental rate is $50 per unit of capital and the firm h
The neutrality of monetary policy means that any increase in the money supply will not lead to changes
in the real economy. An increase in money supply leads to an increase in the aggregate demand, fuelled