ECON101 Study Guide - Midterm Guide: Utility, Exchange Economy, Competitive Equilibrium

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: All

Document Summary

Do not write your name anywhere on the exam. The maximum points total is 20 + 1 bonus points. You have 90 minutes to complete the exam. Budget your time well and show your work. Q1. (4 points) hanna(cid:146)s total willingness to pay schedule for hats is. If the price of a hat is , how many hats will hanna buy? (please remember to show your work!) Q2. (4 points) slim consumes only juice (oj) and chocolate milk (cb). As always in this course, we assume that slim is an optimizing individual with preferences that are transitive, complete, re(cid:135)exive and strictly convex. An economist observes prices and slim(cid:146)s consumption choices for 2 months. The economist collects the following data on slim(cid:146)s consumption (q denotes quantity, p denotes price): month qoj may. In one graph, plot slim(cid:146)s budget constraint and optimal choice for each month. In this same graph, plot also each indi erence curve that goes any optimum.