ECON 3130 Midterm: Exam 1 Spring 2011
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Economics 3130 spring 2011 prelim 1 - j. wissink wednesday march 2. Be sure to label all axes, functions, and variables you use. Total time for the test is 50 minutes. Each question is worth 25 points: zitch consumes only rice and corn (r and c) measured in ounces. Explain briefly and in your explanation define what it means for preferences to be transitive: suppose price= and pcorn= and i=. ), in zitch"s utility maximizing bundle? oz. of corn. 4 oz. of rice: suppose prof. douglas gets utility from only wine (w) and cheese (c). Suppose his preferences can be represented by a cobb-douglas utility function: write down a plausible utility function for prof. douglas, suppose prof. douglas has income=i, and suppose the prices for wine and cheese are and . Your diagram in this part must be consistent with your diagram in part (d). ed91657697c8436f32640c2d036ce5: consider a day in the life of ninon.
