Econ 401: Intermediate Microeconomic Theory
Winter 2016
Homework Problems 6
Please bring written answers to your discussion section on Thursday, February 25.
Part 1: Regular Questions
For mathematical questions, explain the reasoning that leads you to you
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 5
Some of these problems will be discussed in your section on Thursday, February
5, but your GSI will not be able to cover all questions. We shall make suggested
answers available on
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 4
These problems will be discussed in your section on Thursday, January 28.
1. Your GSI will briey talk to you about the data task on this weeks homework problem set.
3
1
2. A consum
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Homework Problems 3
Answers.
Part 1: A Data Task
There were seven columns to ll with numbers. The formulas for these columns, in the order in
which they appear on the spreadsheet, are: =A2*C2+B2*D2,
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Homework Problems 2
Answers.
Part 1: Regular Questions
(For mathematical questions, explain the reasoning that leads you to your answer.
If you dont know how to answer a question, explain where you g
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Homework Problems 4
Suggested Answers
Part 1: Regular Questions
1
2
1. A consumer has utility function: U (q1 , q2 ) = (q1 ) 3 (q2 ) 3 .
(a) Finding the consumers demand function as a function of Y ,
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Homework Problems 5
Suggested Solutions.
Part 1: A Mini Essay Question
1. There are many possible good answers.
Part 2: Regular Questions
6
0
2
4
Price
8
10
2. The equilibrium price is 2. In the diag
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 2
Answers
1. No, it does not necessarily follow. Consider for example an agent who chooses: x from cfw_x, y,
y from cfw_y, z and z from cfw_x.z. This agent reveals intransitive prefe
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 4
Answers
1.
3
1
2. A consumer has utility function U (q1 , q2 ) = (q1 ) 4 (q2 ) 4 .
(a) Solving for the consumers demand function as a function of Y , p1 , and p2 . We can solve
for
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 5
Suggested Solutions
1. The consumer has a utility function U (q, N ) = 2 q + N , faces a price
of consumption p = 1, has a time constraint that N + H = 24, and has
a budget const
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 6
Suggested Solutions
1. Any price between 7 and 8 is an equilibrium price. At such a price
demand and supply are 7.
2. The equilibrium price is:
20 + b
.
a+1
As b increases, the equ
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Course Information
Course description: The subject of this course are households and rms economic
choices, and the way in which these choices interact in markets. We shall also discuss
ways in which
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Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 1
Maths Review
1. Solve each of the following equations for x:
(a) x2 4x + 3 = 0
(b) x4 = 5
(c)
(d)
1
x2 +1
5x =
= 0.5
3
2. Solve each of the following systems of equations for x and
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Section Problems 2
This problems will be discussed in your section on Thursday, January 14.
1. If an economic agent satises the Weak Axiom of Revealed Preferences (WARP), can we conclude
that the age
Repeated Games
and Collusion
Topic 20:
Repeated Games and Collusion
Repeated Games
and Collusion
Bertrand duopoly:
Joint Prot
Maximization
Finitely Repeated
Games
Innitely Repeated
Prisoners
Dilemma
Bernheim and Whinston: 435-439 and 725-731;
Frank: -;
Ni
Moral Hazard
Topic 26:
Moral Hazard
Moral Hazard
Introduction
Introduction
Introduction
An Example
An Example
The First Best
The Second Best
The First Best
Hidden characteristics (Adverse Selection)
Exogenous information is known to one side of the
market
Econ 401: Intermediate Microeconomic Theory
Winter 2009
Homework Problems
Topic 2: Elasticities and Tax Incidence
Please bring written answers to your section
on Wednesday, January 14, or Thursday, January 15.
Part 1: Regular Questions
(Please explain the
Econ 401: Intermediate Microeconomic Theory
Winter 2009
Homework Problems
Topic 5: Demand Functions
Please bring written answers to your section
on Wednesday, January 28, or Thursday, January 29.
Part 1: Regular Questions
(Please explain the reasoning tha
Econ 401: Intermediate Microeconomic Theory
Winter 2009
Homework Problems
Topic 4: Optimal Consumer Choice
Please bring written answers to your section
on Monday, January 26, or Tuesday, January 27.
Part 1: Regular Questions
(Please explain the reasoning
Econ 401: Intermediate Microeconomic Theory
Winter 2009
Homework Problems
Topic 3: Preferences and Utility
Please bring written answers to your section
on Tuesday, January 20, or Wednesday, January 21.
Part 1: Regular Questions
(Please explain the reasoni
Version 1 with Solutions
Quick Answers
1. B
2. C
3. C
4. C
5. A
6. D
7. A
8. B
9. B
10. D
11. C
12. D
13. D
14. D
15. C
16. B
17. C
18. B
19. C
20. A
21. D
22. A
23. A
24. A
25. B
26. D
27. D
28. D
29. B
Page 1
Version 1 with Solutions
30. A
31. C
32. B
3
Version 1
Page 1
Mark the box corresponding to the best answer. Questions are worth 1 point or 2 points,
where the point value is indicated at the start of the question.
1.
[1] Katie has monotonically increasing preferences with indifference curves that a
Version 1
Page 1
Mark the box corresponding to the best answer. Questions are worth 1 point or 2 points,
where the point value is indicated at the start of the question.
1.
[1] A consumer has utility function U (q1 , q2 ) = (q1 )2 (q2 )3 . The consumers i
Version 1
Page 1
Mark the box corresponding to the best answer. Questions are worth 1 point or 2 points,
where the point value is indicated at the start of the question.
1.
[1] Katie has monotonically increasing preferences with indierence curves that are
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Midterm 1
Version 2
This midterm consists of 30 questions. You must answer all questions.
For each question you have a choice between four answers. Only one answer is correct. Indicate
on the scant
Econ 401: Intermediate Microeconomic Theory
Winter 2016
Midterm 1
Version 1
1. 2 points
A rational economic agent seeks to minimize the calories (c) and the sodium (s) in his meals. His
utility function is:
U (c, s) = c s
where > 0 is a constant. We have