## Quiz Information

Login / Sign Up to View Document

## Sample Document Text

ECO 3306 Name:
Fall 2000
Dr. Charles M. North
QUIZ # 2 (Chapters 4 & 5)
1. Zeke has the utility function 22/1121 612),( xxxxu += .
a. What type of preferences does this utility function represent? (2
point)
b. Calculate Zeke’s marginal rate of substitution for any point
),( 21 xx . (3 points)
c. What is the value of Zeke’s MRS at the point (25, 16)? (2 points)
d. Explain what your answer in part (c) means in an economic sense.
(2 points)
e. Suppose that prices are 1$1 =p and 5$2 =p . Using these prices
and Zeke’s utility function, write an equation that says that the slope of Zeke’s
indifference curve is equal to the slope of his budget line at his optimal bundle. (3
points)
f. Using the prices in part (e), calculate Zeke’s optimal bundle if his
income is $250. (2 points)
ECO 3306 – Fall 2000 – Quiz # 2 – Page 1
g. Calculate Zeke’s utility at his optimal bundle. (1 point)
h. Write ...

## Related Documents

Marginal Rate of Substitution Notes

Imperfect Substitutes Notes

Profit Maximization Notes

Assumptions Exam

Indifference Curves Exam

Combinations Quiz

Clothing Food Exam

Indifference Curves Notes

Social Conventions Notes

Marginal Rate Notes

Indifference Curves Notes

Marginal Rate Notes

Preferences Notes

Drake University Exam

Alternative Goods Notes

Constant Returns Quiz

© Copyright 2019 , Koofers, Inc. All rights reserved.

The information provided on this site is protected by U.S. and International copyright law, and other applicable intellectual property laws, including laws covering data access and data compilations. This information is provided exclusively for the personal and academic use of students, instructors and other university personnel. Use of this information for any commercial purpose, or by any commercial entity, is expressly prohibited. This information may not, under any circumstances, be copied, modified, reused, or incorporated into any derivative works or compilations, without the prior written approval of Koofers, Inc.