MATH 235 Final: MATH 235 UMass Amherst spring11-final-compact
Document Summary
All questions must be answered on this test form! For each question you must show your work and (or) provide a clear argument. All graphs must be accurate to get credit. If you need scratch paper, use the back of the form. Short questions which of the following is true or false, where e(p, u) is the expenditure function, h(p, u) hicksean demand, x(p, w) walrasian demand, v(p, w) indirect util- ity. (mark the correct box. Be careful, some of the questions are a little bit tricky. ) > 0 for all i. true false: if e is di erentiable and preferences are locally non-satiated then e(p,u) U: true false 1, let u(x1, x2) = min{x1, x2}. Then e(p, u) is not di erentiable with respect to prices. true false: let u(x1, x2) = x1 + x2. Then e(p, u) is not di erentiable with respect to prices when p1 = p2. true false: suppose that preferences are lexicographic.
