question archive University of California at Irvine Econ 100A - Problem Set #1 - Amjad Toukan - Summer I 2021 Due on Friday July 2nd, 2021 Chapter 3 Problems: 1
Subject:BusinessPrice: Bought3
University of California at Irvine
Econ 100A - Problem Set #1 - Amjad Toukan - Summer I 2021
Due on Friday July 2nd, 2021
a. Joe has convex preferences and dislikes both hamburgers and soft drinks.
e. Bill likes hamburgers, but neither likes nor dislikes soft drinks.
c. Do you think Bridget and Erin have the same preferences or different preferences? Explain.
9. Connie has a monthly income of $200 that she allocates among two goods: meat and potatoes.
a. Suppose meat costs $4 per pound and potatoes $2 per pound. Draw her budget constraint.
b. Graph Jane’s budget line on the same graph.
c. Can Jane afford any of the bundles that give her a utility of 800? What about a utility of 1200?
c. Is rice a normal good or an inferior good? Explain.
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b. Now consider the following information about the choices that Mary makes:
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c. Finally, examine the following information about Jane’s choices:
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a. Draw the demand curve for bridge crossings.
b. How many people would cross the bridge if there were no toll?
c. What is the loss of consumer surplus associated with a bridge toll of $5?
Appendix to Chapter 4 Problems:
1. Sharon has the following utility function:
a. Derive Sharon’s demand for candy bars and espressos.
b. Assume that her income I = $100. How many candy bars and how many espressos will Sharon consume?
c. What is the marginal utility of income?