AFM131 Lecture Notes - Lecture 13: Demand Curve, Gladiator, Jargon

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Bob Sproule

Document Summary

Do not write your name anywhere on the exam. You have 75 minutes to complete the exam. Budget your time well and show your work. Please wait for the exam to begin before you turn page. Q1. (5 points) hanna(cid:146)s total willingness to pay schedule for wedding gowns is. Continue to assume that the price of a wedding gown is . (as always, please remember to show your work!) Q2. (4 points) jerry lives in an economy with two goods: bananas and apples. Suppose that jenny is an optimizing consumer with indif- ference curves that are strictly convex, and that we observe that jerry buys 3 bananas and. Draw a graph that shows jerry(cid:146)s (1) budget constraint, (2) optimal consumption point, and (3) the indi erence curve that goes through the optimum point. In your graph, place quantity of apples on the horizontal axis. Q3. (4 points) elvis only consumes kraft dinners and steaks.