ECON 3130 Midterm: Exam 1 Fall 2005
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Economics 313 - fall 2005 prelim 1 - j. wissink monday oct. 3. Be sure to label all axes, functions, and variables you use. Total time for the test is 50 minutes. Add or subtract any lines/curves you need: in general, i. e. , for any values of px, py and i, what is the function for the optimal amount of x in. X: suppose marc gets utility from only x and y. If marc"s utility function is: u(x, y) = min{2x, 3y} then what are the algebraic signs of the following terms in his slutsky equations. In september when prices for x and y were px = and py = , he chose the bundle x = 10 and y = 0: graph manfred"s implied budget lines with the bundles he selected indicated. No detailed derivation necessary: illustrate and label/identify the total effect, hicksian substitution effect and income effect on an.
