Economics
Advertisement

Question from Past Microeconomics Qualifying Exam[]

Spring 2001 - Section II, Question three, George Mason University Give complete answers to three of the following four questions (about 25percent each) Write clear concise and legible answers.:


Suppose Al has the utility function , where and are goods. His income is dollars. The prices of and are and respecitively.

  • a. Derive Al's demand for . Be sure to explain your reasoning and mathematics
  • b. Determine wheather Al's demand for is downward sloping or not. Be sure to explain your reasoning and mathematics.
  • c. Determine whether is a normal good or not. Be sure to explain your reasoning and mathematics.
  • d. What is the relationship between the demand for good and the excess demand for good ? If lambda (L) appeared in your calculations, what is its economic interpretation?

Answer[]

Other Questions[]


This micro-stub needs improving.
Advertisement