Econ 205 Spring 2014
Rachel Kranton
Problem Set 2
Due Date: February 3,2014 5 p.m.
1. Lori has preferences represented by a Cobb -Douglas utility function,
U (x, y ) = x1/2 y 1/2
for goods X and Y. Currently, pX = $1, pY = $2 and I = $100. Suppose the gov
Econ 205 Spring 2014
Rachel Kranton
Problem Set 1
Due Date: January 27,2014 5 p.m.
1. Graph a typical indierence curve for the following utility function and determine whether they have
convex indierence curves (that is whether the MRS declines as x incre
Econ 205 Fall 2014
Rachel Kranton
Problem Set 1
Due Date: January 27,2014 5 p.m.
1. Graph a typical indierence curve for the following utility function and determine whether they have
convex indierence curves (that is whether the MRS declines as x increas
Econ 205 Spring 2014
Rachel Kranton
Problem Set 2
Due Date: February 3,2014 5 p.m.
1. Lori has preferences represented by a Cobb -Douglas utility function,
U (x, y ) = x1/2 y 1/2
for goods X and Y. Currently, pX = $1, pY = $2 and I = $100. Suppose the gov
Econ 205 Spring 2014
Rachel Kranton
Problem Set 3
Due: February 10, 2014 5pm
1. Tim has the following utility function: U (x, y ) = mincfw_x, 3y . Let Tims income be I =$300. Let px =$2
and py =$4 be the prices of goods x and y respectively.
(a) Write dow
Econ 205 Spring 2014
Rachel Kranton
Problem Set 4
Due: February 17, 2014 5pm1
1. Suppose Prof. Taylors son, Austin, has preferences over hours of leisure h and sending text messages
c that are represented by:
U (h, c) = 2 ln(h) + ln(c).
Suppose that Austi
Econ 205 Spring 2014
Rachel Kranton
Problem Set 3
Due: February 10, 2014 5pm
1. Tim has the following utility function: U (x, y ) = mincfw_x, 3y . Let Tims income be I =$300. Let px =$2
and py =$4 be the prices of goods x and y respectively.
(a) Write dow