ECON 2 Midterm: Economics 210A UCSB Midterm12014

• School: UCSB
• Department: Economics
• Course: ECON 2
• Professor: All

Document Summary

Answer question 1 and any 4 of the other 6 questions. Good luck: let f be a real-valued concave function whose domain is a convex subset of. Let g be a function from the reals to the reals and de ne the composite function h(x) = g (f (x)). State whether each of the following claims about the function h is true or false. If true, give a proof, justifying each claim made in your proof. 1: if g is a concave function, then h is a concave function, rocky consumes two goods. He prefers any bundle such that x1 > 0 and x2 > 1 to any bundle for which these two inequalities are not satis ed. Relate your answer to the gorman polar form. Explain. v(p1, p2, y) = w(p1, p2) + z(p1, p2)y: a consumer has utility function u(x1, x2) = (cid:16)x.