## This preview shows page 1-2-3-4 out of 13 pages .

Econ 302 Exam 1 McLeodNAME ______________________________________________PSU ID #______________________________________________PLEASE ANSWER ALL QUESTIONS IN THE SPACE PROVIDED.1. (12 total points) Suppose a consumerâ€™s utility function is given by U(X,Y) = MIN(2X,Y). The consumer has \$60 to spend (M = \$60) and the price of Y is PY = 1. a) (8 points) Draw the Price Consumption Curve for the following values of PX: PX = 1; PX = 2; PX = 3. Be sure to label your graph carefully and accurately. You do not need to draw the indifference curves that run through each of the consumerâ€™s optimal bundles, but your graph should include accurately drawn budget constraints associated with each level of income, and show the consumerâ€™s optimal bundle for each budget constraint.When PX = \$1, the budget constraint will have a vertical intercept (Y-axis) of 60 and a horizontal intercept (X-axis) of 60. The bundle chosen is (X = 20, Y = 40). When M = \$2, the budget constraint will have a vertical intercept (Y-axis) of 60 and a horizontal intercept (X-axis) of 30. The bundle chosen is (X = 15, Y = 30). When M = \$3, the budget constraint will have a vertical intercept (Y-axis) of 60 and a horizontal intercept (X-axis) of 20. The bundle chosen is (X = 12, Y = 24). PXX Y1 20 402 15 303 12 24- Each Budget Constraint: 1 point (both intercepts must be correct) (3 total points)- Each Bundle: 1 point (both X and Y values must be correct) (3 total points)- Labeling Each Axis: 1 point each (2 total points)b) (4 points) Sketch the graph of the consumerâ€™s Engel curve for good X.The Demand Curve is the graph of the first two columns above. PX is on the vertical axis, and X is on the horizontal axis. - Each combination of PX and X: 1 point (3 points total)- Labeling the graph: 1 point- NOTE: IF THE GRAPH IS NOT LABELED CORRECTLY, IT IS NOT A Demand CURVE, SO 0 POINTS.2. (8 total points) Suppose there are two consumers, A and B. There are two goods, X and Y. There is a TOTAL of 8 units of X and a TOTAL of 8 units of Y. The consumersâ€™ utility functions are given by:UA(X,Y) = 3X + YUB(X,Y) = X*YFor each of the following allocations, answer True if the allocation is Pareto Efficient, and FALSE if the allocation is not Pareto Efficient. i) Consumer A gets 6 units of X and 2 units of Y, and Consumer B gets 2 units of X and 6 units of Y.TRUEii) Consumer A gets 4 units of X and 6 units of Y, and Consumer B gets 4 units of X and 2 units of Y.FALSEiii) Consumer A gets 7 units of X and 0 units of Y, and Consumer B gets 1 units of X and 8 units of Y.FALSEiv) Consumer A gets 4 units of X and 0 units of Y, and Consumer B gets 4 units of X and 8 units of Y. TRUE3. (12 total points) Suppose there are two consumers, A and B, and 2 goods, X and Y. The utility functions of each consumer are given by:UA(X,Y) = 2X+YUB(X,Y) = MIN(4X,Y)The initial endowments are: A: X = 7; Y = 4B: X = 1; Y = 4a) (8 points) Using an Edgeworth Box, illustrate the initial endowments. Also, for each consumer, draw the indifference curve that runs through their bundle. Be sure to label your graph carefully and accurately. In Classb) (4 points) Is the initial allocation Pareto Efficient?YES4. (24 total points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 3 units of good X and 8 units of good Y. Consumer B is given an initial endowment of 3 units of good X and 4 units of good Y. Consumer Aâ€™s utility function is given by:UA(X,Y) = X4*Y,And consumer Bâ€™s utility function is given byUB(X,Y) = X*Y.Therefore, consumer Aâ€™s marginal utilities for each good are given by:MUX = 4X3YMUY = X4Also, consumer Bâ€™s marginal utilities for each good are given by:MUX = YMUY = Xa) (8 points) Suppose the price of good Y is equal to one. Calculate the price of good X that will lead to acompetitive equilibrium.PX = 4b) (4 points) How much of each good does each consumer demand in equilibrium?Consumer Aâ€™s Demand for X: 4Consumer Aâ€™s Demand for Y: 4Consumer Bâ€™s demand for X: 2Consumer Bâ€™s demand for Y: 8c) (2 points) What is the marginal rate of substitution for consumer A at the competitive equilibrium?MRSA = -4d) (10 points) Illustrate the situation in an Edgeworth Box. Be sure to label your box carefully and accurately. Identify the initial endowment and label it W. Identify the competitive equilibrium and label it D. Draw the budget constraint that each consumer faces and identify the values where it intercepts the perimeter of the Edgeworth Box (there are two different intercepts to identify). The Edgeworth Box should have the following dimensions:X-dimension = 6; Y-dimension = 12. I will illustrate this in class. The Budget constraint should intercept Bâ€™s X-axis at 4 . It should also intercept Aâ€™s X-axis at 5.Dimensions: 2 pointsW: 2 pointsD: 2 pointsBudget constraint intercepts: 2 points (1 point each)Labeling: 2 points (1 point for labeling the x and y axes; 1 point for labeling the graph with A and B)5. (8 points) Suppose a consumerâ€™s utility function is given by U(X,Y) = 3X +Y. The consumer has \$48 to spend (M = \$30). The price of the goods are PX = 8 and PY = 3. Draw the consumerâ€™s budget constraint and identify the optimal bundle that the consumer should choose in order to maximize her utility. Also, draw the indifference curve that runs through this bundle. Your graph should be labeled carefully and accurately.- The Budget Constraint has Y-Intercept = 16 and X-Intercept = 6. - The Optimal Bundle is X* = 6; Y* = 0.- The Indifference Curve has Y-Intercept = 18 and X-Intercept = 6- Budget Constraint: 2 points (both intercepts must be correct). - Optimal Bundle: 2 Points (both X and Y values must be correct). - Indifference Curve: 2 points (both intercepts must be correct). - Labeling Graph: 2 points (1 point for each axis).6. (20 total points) Suppose a consumerâ€™s utility function is given by U(X,Y) = X*Y. Also, the consumerhas \$64 to spend, and the price of X, PX = 16, and the price of Y, PY = 1.a) (4 points) How much X and Y should the consumer purchase in order to maximize her utility?X* = 2; Y* = 32b) (4 points) How much total utility does the consumer receive?U = 64 (Okay if consistent with a)) c) (4 points) Now suppose PX decreases to 1. What is the new bundle of X and Y that the consumer will demand?X** = 32; Y** = 32d) (4 points) How much money would the consumer need in

## PSU ECON 302 - Exam 1

Homework #1

Homework #5

Homework #4

Homework #3

Homework #2

Income/Substitution Effect

Lesson 2 workbok solutions

Econ Homework 2

Econ Homework 4

Homework 5 Key

Economics 302 Practice Exam 1

• This document and 3 million+ documents and flashcards
• High quality study guides, lecture notes, practice exams
• Course Packets handpicked by editors offering a comprehensive review of your courses
• Recent Documents
• Students with Disabilities
• Become a Note-Taker

Join to view Exam 1 and access 3M+ class-specific study document.

Join to view Exam 1 2 2 and access 3M+ class-specific study document.

#### IMAGES

1. Class Notes for ECON 302 at University of British Columbia (UBC)

2. Econ 302 Assignment 4

3. Econ-302-exam-2-review-b

4. ECON Homework CH. 1-6 Answers

5. ECON 302 Exam 1 Bank

6. ECON 302 Study Guide

#### VIDEO

1. Sight words list 19

2. Java homework 1

3. ECON 112 Ch 11 Part 1: Output and Costs

4. Unit 1 Homework 1

5. Best Econ Project Ever

6. ECON { NATIONAL INCOME

1. Homework 1 Econ 302 Fall 2021

1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle,accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately.

2. Econ 302 Homework 1 (Measurement) Flashcards

Econ 302 Homework 1 (Measurement) A U.S. citizen works for a U.S. company in Germany. The income earned by the citizen increases U.S. GDP. Click the card to flip đź‘† False Pages 19 and 20. GDP is the final goods and services produced in an economy. Here the good is produced in Germany and will increase German GDP. Click the card to flip đź‘† 1 / 18

3. Penn State Econ 302 HW 1-5 Flashcards

Economics Managerial Economics Penn State Econ 302 HW 1-5 For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label your graph carefully and accurately.

4. ECON 302

Homework 1 Econ 302 Fall 2022. 9 pages 2022/2023 None. 2022/2023 None. Save. Related Answered Questions. Intermediate Microeconomic Analysis (ECON 302) uppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has \$90 to spend (M = \$90). The Price of good Y is P Y = \$1.

5. ECON 302 Homework 1 + 2 Flashcards

Study with Quizlet and memorize flashcards containing terms like Economics is primarily the study of?, Economics is the study of how people cope with?, The concept of scarcity as used by economists refers to? and more. ... ECON 302 Homework 1 + 2. Flashcards; Learn; Test; Match; Q-Chat;

6. Econ 302 Homework 1

Econ 302 Homework 1 This homework provides practice problems on optimal bundles, preferenc... View more University The Pennsylvania State University Course Intermediate Microeconomic Analysis (ECON 302) 18 Documents Students shared 18 documents in this course Academic year:2021/2022 Helpful? 00 Report Document Comments

7. Econ 302 Homework #1 McLeod

Skip to document HomeAsk AIMy Library Homework 1 Econ 302 Fall 2023-1 The Pennsylvania State University Intermediate Microeconomic Analysis (ECON 302) 100% (3) Economics 302 - lecture notes 100% (3) 100% (1) 100% the vertical and horizontal intercepts. (Please put the quantity of Good Y on the Y-axis, and the quantity of Good X on the X-axis).

8. Homework 1 Econ 302 Fall 2022

Homework 1 Econ 302 Fall 2022 - Econ 302 Homework #1 McLeod Due on Canvas by 11:59 pm, Sunday, - Studocu econ 302 homework mcleod due on canvas 11:59 pm, sunday, september 18th, 2022. late homework will not be accepted. name id instructions: please read carefully Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew

9. ECON 302 HW 1.docx

View ECON 302 HW 1.docx from ECON 302 at Coastal Carolina University. Dylan Kerr 31 Jan 2023 ECON 302 Homework 1 1. a. X-intercept = 60 X = 24 - 8 (0) - 2 (4) + 3 (3) + .001 (35000) b. Y-intercept = AI Homework Help. Expert Help. Study Resources. Log in Join.

10. Solved ECON 302 HW1, Fall 2020 Page 2 ECON 302 HW1, Fall

ECON 302 HW1, Fall 2020 Page 2 ECON 302 HW1, Fall 2020 Page 3 1.2 The consumer's utility function is given by U (X,Y)= 4x + 3y and the given bundle is X = 2, Y = 4. u-20. MRS = Draw your graph in the space provided. Label at least some tick marks on the axes to make reading the graph easier. This problem has been solved!

11. Econ 302 Homework #1 McLeod Due...

View Homework Help - Homework 1 Answer Key.doc from ECON 302 at Pennsylvania State University. Econ 302 Homework #1 McLeod Due in class Wednesday, September 12th. Name _ ID # _ Instructions: Please

12. Econ302 HW1 Full Solution of Ex 1 .pdf

Econ 302 - Homework 1 Solutions of Ex.1. October 12, 2021 1 Multiple Choice Questions NOTE: In questions 1-3, 7 several answers are allowed. 1. Which of the following statements are false? 1. GDP measures market value only of final goods. 2. GDP does not include final services produced in the economy by non- residents. 3.

13. Econ 302 Exam 1 Flashcards

Equilibrium condition. The sum of the initial endowments of both consumers must equal the sum of the optimal bundles of both consumers. Da+Db=Wa+Wb. Study with Quizlet and memorize flashcards containing terms like Consumer Theory, Budget set, Marginal rate of transformation (MRT) and more.

14. ECON 302 : INMD MICROEC ANLY

Econ 302 Homework 1 Answer Key Spring 2019.doc 7 pages ECON302_HW4_Fall14 11 pages Exam 1 Version B Answer Key 7 pages Homework_1_Answer_Key 6 pages Homework 4 Answer Key 5 pages Answer_Key_Homework_2 3 pages 302HW1

15. Econ 302 Homework 1 Answer Key Spring 2022.docx

View Econ 302 Homework 1 Answer Key Spring 2022.docx from ECON 302 at Pennsylvania State University. Econ 302 Homework #1 McLeod Due on Canvas by 11:59 pm, February 6th, 2022. LATE HOMEWORK WILL NOT

87% (15) View full document Solutions Available Solutions Available Homework 1 Answer Key Econ 302 Fall 2019.doc Exam 2 Version A Answer Key homework Econ 302 Final Exam Review Solutions Available notes Econ 302 Homework #1 McLeod Due in class Wednesday, September 11th.

17. Homework 2 Econ 302 Fall 2021

Introduction To Marketing (MBAE 60603) Business Core Capstone: An Integrated Application (D083) EES 150 - Review for Exam 2 PSY HW#3 - Homework on habituation, secure and insecure attachment and the stage theory Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky)

18. Econ 302 Homework 3

Homework 1 Econ 302 Fall 2021; Homework 2 Econ 302 Fall 2021; Preview text. Download. Save Share. Econ 302 Homework 3. University: The Pennsylvania State University. Course: Intermediate Microeconomic Analysis (ECON 302) 18 Documents. Students shared 18 documents in this course. Info More info. Download.

19. PDF Online ECON 302: Intermediate Microeconomics

ECON 302 Intermediate Microeconomics Workbook, Second Edition by Dr. Bryan Buckley. TI-89 Graphing Calculator Student Assessment: Final grades, exam grades, and all homework assignment grades will be rounded to the nearest integer. There is no curve in this class. Grade Weights Online Assessment

20. PSU ECON 302

PXX Y1 20 402 15 303 12 24- Each Budget Constraint: 1 point (both intercepts must be correct) (3 total points)- Each Bundle: 1 point (both X and Y values must be correct) (3 total points)- Labeling Each Axis: 1 point each (2 total points)b) (4 points) Sketch the graph of the consumer's Engel curve for good X.The Demand Curve is the graph of ...

21. PDF ECON 302: Intermediate Microeconomics

141 Wohlers Hall Meeting Time: Section BL1 Section BL2 TTH 2:00-3:20 TTH 3:30-4:50 Communication: Office: Room 23, David Kinley Hall Office Phone: 217-300-3771 E-mail: [email protected] Office Hours: Monday and Wednesday from 9:30 to 11:30 and 1:30 to 3:30

22. Econ302-hw2-summer09-solution

View Notes - Econ302-hw2-summer09-solution from ECON 302 at University of Illinois, Urbana Champaign. 1 Econ302 Homework Assignment 2 Summer 2009 Solutions 1. Suppose that the price of gasoline has. AI Homework Help. Expert Help. Study Resources. ... Econ 302 (Inter Micro) Lesson 04a- Market Demand. University of Illinois, Urbana Champaign ...

23. Econ 302 Homework 4 With Answers

View Homework Help - Econ 302 Homework 4 With Answers from ECON 302 at Pennsylvania State University. Econ 302 Homework #4 McLeod Due in class Monday, April 1st, November 7th. Name _ ID #

24. PDF ECON 1000 (Fall 2023

ECON 1000 (Fall 2023 - Sections 04 and 07) Homework #5 - Answer Key . Multiple Choice Questions: (10 points each) 1. In 2019 there were _____ deaths from malaria world-wide, with _____ of these occurring in Africa. B. 409,000; 94%. 2. In 1950, Real Per Capita GDP was: \$2,577 in Panama; \$2,638 in Cuba; and \$3,416 in Puerto Rico. Cuba has