ECO200Y1 Midterm: ECO200Y1 Term Test 1 2017 Winter Solutions
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ECO200Y1 Full Course Notes
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There are 6 questions of unequal value: yes or no, variety pack, utility functions, kelly"s unusual equilibrium, revealed preference and index numbers, multiple choice. Show your work for full marks (excluding yes/no and mc questions). Yes or no (12 marks) (12) for each of the statements below, indicate if you agree (yes) or disagree (no). Select the best answer, keeping in mind, of course, the assumptions, models and symbols we have developed in class. a) If you use mux / px= muy / py in solving for the equilibrium in the. Indifference model with an ordinal utility function, prof. wolfson will give you full marks (if you calculate the right numeric answer of course! Indiff theory uses non-measureable utility (ordinal utility) with equilibrium mux/muy = px/py i. e. , no units of measurement. The equation is for utility theory, with jollies of satisfact"n (cardinal utility): mike"s demand good y is y = 100 / p1/2.
