Introduction ix Lecture 1. Preferences Problem Set 1 1 10 Lecture 2. Utility Problem Set 2 12 20 Lecture 3. Choice Problem Set 3 23 42 Lecture 4. Consumer Preferences Problem Set 4 46 59 Lecture 5. Demand: Consumer Choice Problem Set 5 61 74 Lecture 6. More Economic Agents: a Consumer Choosing Budget Sets‚ a Dual Consumer and a Producer Problem Set 6 76 88 Lecture 7. Expected Utility Problem Set 7 93 104 Lecture 8. Risk Aversion Problem Set 8
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analyze its economic utility‚ using the questions below. a. Describe the good you chose to analyze. (1 sentence. 0.5 points) b. Describe the form utility of this good. Is the form utility good or bad? Can you think of ways to improve it? (2-5 sentences. 1.0 points) c. Describe the place utility of this good. Is the place utility good or bad? Can you think of ways to improve it? (2-5 sentences. 1.0 points) d. Describe the time utility of this good. Is the time utility good or bad? Can you think
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Sammy and Grace spend their incomes on two goods‚ Food (F) and Clothing (C ). Sammy’s preferences are represented by the utility function U(F‚C) = 10FC. Grace’s preferences are represented by the utility function U(F‚C) = 0.20F2C2. a. With food on the horizontal axis and clothing on the vertical axis‚ identify on a graph the set of points that give Sammy the same level of utility as the bundle (10‚5). Do the same for Grace on a separate graph. b. Do you think Sammy and Grace have the same or different
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has well-behaved preferences‚ and his optimal bundle contains 10 scones. b) (2) Illustrate his optimal bundle in your diagram for (a); label it A. Why is this choice optimal? What conditions does it satisfy? Ans: This bundle maximizes Rajan’s utility‚ because it is on the highest indifference curve he can attain given his income and the prices he faces. The two conditions are i) it is on his budget line‚ so all his money is spent‚ and ii) at this bundle his marginal rate of substitution is
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Estimating Price Elasticities with Theory-Based Priors Author(s): Alan L. Montgomery and Peter E. Rossi Source: Journal of Marketing Research‚ Vol. 36‚ No. 4‚ (Nov.‚ 1999)‚ pp. 413-423 Published by: American Marketing Association Stable URL: http://www.jstor.org/stable/3151997 Accessed: 22/07/2008 16:25 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR ’s Terms and Conditions
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The “value of time” according to transport economics refers to the opportunity cost of the time that voyager spend on their journey. In other words‚ it is the amount that a traveler would be willing to pay in order to save time‚ or the amount they would accept as compensation for lost time. It’s a known fact that one of the main reasons behind the transport improvements is the amount of time that travelers can save. Using a set of values of time‚ the economic benefits of a transport project can be
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chapter uses the cheating scandal at Merrill Lynch to illustrate how a manager’s view of behavior can affect decision making. It summarizes the economic view of behavior and contrasts it with other views. The chapter presents a graphical analysis of utility maximization and decision making under uncertainty. The concepts in this chapter are an important foundation for subsequent material in the book. CHAPTER OUTLINE ECONOMIC BEHAVIOR: AN OVERVIEW Economic Choice Marginal Analysis Managerial Application:
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between marginal and total utility? Q2 Fill in the following table on the total and marginal utilities of a certain product A. Use your results to answer the following questions. Units of product A | Total utility | Marginal utility | 0 | 0 | | 1 | 20 | _____ | 2 | 35 | _____ | 3 | _____ | 10 | 4 | _____ | 5 | 5 | _____ | 0 | 6 | 45 | _____ | 7 | 35 | _____ | 8 | _____ | –15 | (a) Graph both the total utility and marginal utility curves together on the same
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so that he could still afford his original bundle? a. $700 b. $450 c. $350 d. $1‚050 5. Charlie has the utility function U(xA‚ xB) = xAxB. His indifference curve passing through 15 apples and 16 bananas will also pass through the point where he consumes 3 apples and a. 40 bananas. b. 83 bananas. c. 20 bananas. d. 87 bananas. e. 80 bananas. 1 6. Harmon’s utility function is U(x1‚ x2) = x1x2. His income is $100. The price of good 2 is p2 = 4. Good 1 is priced as follows. The
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Lectures On Intermediate Microeconomics Kotut c Samwel‚ M. Phil (Economics) Moi University. Chapter one 1.0 Introduction Economics is the science of scarce resource allocation to meet endless human desires. The modern economics science has two major branches i.e. Micro-economics and Macro-economics. Compared to micro-economics Macro-economics is a younger branch of economics. Until the economic depression of 1930s economics was limited to what is
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