ECON 3130 Midterm: Exam 1 Fall
Document Summary
Prelim #1 - october 6, 2004: wissink. Be sure to label all axes, functions and variables used. Partial credit will be given, so always try something. Short essay: answer all four - 12 points each. 2: (4) abe consumes only s and t. write down a utility function that would be an acceptable representation of the indifference curve map illustrated for abe. Ic0: (4) reproduce the diagram in your exam booklet and illustrate an optimal bundle for abe assuming that ps = and pt = and income=. 00. Add or subtract any lines you need: (4) on your diagram illustrate the compensating variation (in units of the good t, i. e. , measured on the t axis) of an increase in the price of s. slope = 1/3. S (12) the following information is gathered about ima smart. When p0 the bundle x0 = 6 and y0 = 6.
