MAT 2377 Midterm: MAT 2377 University of Ottawa MidtermA MAT2377 Fall2017
Document Summary
Show that for the producer, this is preferable to a price that is perfectly stable at the mean p . (hint: use the convexity property. : (7 points) integrability theorem. Suppose that there are three goods and that a consumer"s demand behaviour is summarized by the functions xi(p1, p2, p3, y) = Iy pi i = 1, 2, 3, where i > 0 and 1 + 2 + 3 = 1: (5) suppose that you want to verify that the associated vector of demands x(p, y) is utility generated. Describe brie y how you would go about that. (nb i don"t expect you to go into the mathematical details here. 1: (15 points) income and substitution e ects, (5) suppose that there are only two goods to consume, goods 1 and 2. De ne the slutsky matrix s(p, y) of price and income responses: (5) show that s(p, y) must be symmetric and negative semide nite, (10 points) fixed factors.
