Hw1 Solution Essay - 1317 Words

Econ3101 - Section 006 Intermediate Microeconomics Xavier Vinyals-Mirabent Due: Wednesday, February 1st, 2012. Solutions to Homework 1. 1 1. A consumer has preferences for two goods. Her preferences satisfy Axioms 1 through 4 as discussed in class. A v D v 10 E v 5 C v B v 0 0 5 (a) Plot and label the following bundles: A (2,10) B (6,2) C (0,4) D (8,10) E (4,6) (b) Assume A is indiï ¬â‚¬erent to B (A ∠¼ B). On a single line, list all the bundles in descending order of preference using ( ) to denote strict preference and (∠¼) to denote indiï ¬â‚¬erence between adjacent pairs. In other words, use the form: A B C D E Answer: D E A∠¼B C, or D E B∠¼A C. 10 2 2. Consider an economic agent who has preferences that are represented†¦show more content†¦Figure 1: Jeremy Bentham 100  ¨  ¨Ã‚ ¨  ¨ 75 50 25 0  ¨  ¨Ã‚ ¨ s d  ¨  ¨Ã‚ ¨ d  ¨  ¨Ã‚ ¨ d ¨  ¨  ¨Ã‚ ¨  ¨ d  ¨  ¨Ã‚ ¨  ¨Ã‚ ¨ d  ¨Ã‚ ¨  ¨  ¨  ¨Ã‚ ¨  ¨d  ¨  ¨Ã‚ ¨ d  ¨Ã‚ ¨  ¨Ã‚ ¨  ¨ d ¨  ¨  ¨Ã‚ ¨  ¨Ã‚ ¨  ¨Ã‚ ¨ d  ¨Ã‚ ¨  ¨Ã‚ ¨  ¨ d  ¨  ¨  ¨  ¨Ã‚ ¨ d  ¨  ¨Ã‚ ¨ d  ¨  ¨  ¨  ¨  ¨Ã‚ ¨  ¨  ¨Ã‚ ¨  ¨Ã‚ ¨  ¨Ã‚ ¨  ¨  ¨  ¨Ã‚ ¨ 0 25 50 75 100 Figure 2: John Stuart Mill 100 r r r 75 50 25 0 rr r rr r r rr rr rr r rr rr r r rr r rr r rr r rr rr r rr rr r r rr r r r r rr  © r rr r rr r r rr r rr rr rr rr rr r rr r 0 25 50 75 100 8 6. I’ve been told I have odd tastes. I thought about this and realized that: †¢ If I have more Y than X, then I always trade 5 Y for one X. †¢ If I have more X than Y, then every time I give up one Y, I require 5 X to remain indiï ¬â‚¬erent after the exchange. (a) Plot and label the following bundles and then graph my indiï ¬â‚¬erence curves through each of these points. A = (10,50) B = (50,50) C = (65,5) (b) Please tell me the value of my: Marginal Rate of Substitution at point A =5 Marginal Rate of Substitution at point C =1/5 100 h hh h h h h hh h h hh h hh h hh h hh h hh h hh h hh h hh h hh h h hr A B r hÂâ€"Ââ€" Ââ€"Ââ€"Ââ€" hh Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" hh Ââ€"Ââ€"Ââ€" Ââ€" hh hh hh hh hh hh hh hÂâ€" Ââ€" hÂâ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" C r Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€"Ââ€"Ââ€" Ââ€" Ââ€" Ââ€" 75 50 25 0 0 25 50 75 100 9 7. Britney S. has a divided mind. Her preferences change drastically according to how much X andShow MoreRelatedComp3511 Hw1 Solution1136 Words   |  5 PagesFall 2011 COMP 3511 Homework Assignment #1 Solution Handout Date: Sept. 22, 2011 Due Date: Oct. 6, 2011 Name: ______________ ID: ___________________ E-Mail: _____________ COMP 3511 L __ Please read the following instructions carefully before answering the questions: ï  ¬ You should finish the homework assignment individually. ï  ¬ There are a total of 4 questions. ï  ¬ When you write your answers, please try to be precise and concise. ï  ¬ Fill in your name, student ID, email and Section number at the topRead MoreSP15 SCM 305 Syllabus1256 Words   |  6 Pageshomework is assigned. Copies of homework solutions will be placed in the Help Room (103E SUM) and on Blackboard. No late homework submission will be accepted after the solutions are made available. All homework assignments shall be submitted in class. Do not submit your homework on blackboard! Grading for each homework assignment will be based on 3 points for procedure (as indicated above), 2 points for clarity, and 15 points for the analysis and solutions. If you have questions concerning your homeworkRead MoreQuestions On Advanced Discrete Math And Algorithms1916 Words   |  8 PagesFall 2016 Homework 1 Solutions Author: Aditeya Pandey, Collaborators: Micha Schwab,Supraja Krishnan †¢ Problems 1-3 are meant as a review of undergraduate discrete math and algorithms. They shouldn’t take you too long, but I recommend starting these right away to make sure that you have the appropriate background for this course. †¢ You must type your solutions using L A TEX. Please submit both the source and PDF files using the naming conventions lastname hw1.tex and lastname hw1.pdf. †¢ Strive for clarityRead MoreInvestment Analysis Course4863 Words   |  20 Pagesand Review Exam 1 Risk and Return Risk and Return Efficient diversification Efficient diversification CAPM and APT 1, 2, 3, 4, 9 5 5 6 6 7 HW 4 due Excel case 1 due 4 HW 3 due Chapter Homework and Excel cases (required) 1 2 2 3 3 9 9 9 4 HW2 due HW1 due 11/10/11 11/15/11 11/17/11 11/22/11 11/24/11 11/29/11 12/01/11 12/06/11 12/08/11 12/13/11 12/15/10 CAPM and APT Efficient markets Wrap up and Review Exam 2 Thanksgiving (no class) Equity valuation Equity valuation Macroeconomics and industry