ECO204Y5 Lecture Notes - Coffee Roasting, Inverse Demand Function, Price Floor

78 views2 pages
8 Dec 2013
School
Department
Course
Professor

Document Summary

Eco204: homework assignment 1: for each of the questions below, decide whether the statement is true, false or uncertain. Explain your answer thoroughly to justify the answer you gave: in the graph below, assume that i2 > i1. True, false or uncertain: this individual views both goods as normal goods. X: suppose that karen"s favorite fruits are apples and strawberries and purchases both fruit throughout the year. The price for apples remains constant throughout the year, but strawberries fluctuate depending on the season. Assume: her convex-shaped indifference curves remain constant throughout the year. Pizza costs a slice and burgers cost each. Initially, the price of coffee (pc) is and the price of donuts (pd) is . Then the price of donuts rose to and the price of coffee remained at : using you knowledge of utility maximization and the lagrange multiplier, derive.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents