ECON 2 Midterm: Economics 210A UCSB Midterm11ans2

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

Document Summary

1: let f and g be real-valued concave functions with the same domain, a. De ne the function h so that for all x a, h(x) = f (x) + g(x). 3 let f and g be real-valued concave functions with the same domain, a. If so, prove it. if not, provide a counterex- ample. 2: a consumer has preferences represented by the utility function. U (x1, x2) = x1 + x2 + 2x. Good 1 is the numeraire and has price 1. Be careful to account for corner solutions if there are any. 3: find this consumer"s expenditure function e(p1, p2, u), verify that shephard"s lemma applies in this case. If not, provide a counterexample: a sculpture is placed on top of a horizontal grid. 1 3x1x2 + x2: in what direction on the surface should the ant crawl if it wants to climb most steeply? (hint: directions should be described by a vector whose length is 1 unit. )