范里安微观作业(胡晓娟5次).pdfVIP

Intermediate Microeconomics Problem Set 1 Spring 2013 1. Shirley is in the habit of drinking beer each evening while watching “The Best of Bowlerama” on TV. She has a strong thumb and a big refrigerator, so she doesn’t care about the size of the cans that beer comes in, she only cares about how much beer she has. (a) On the graph, draw some of Shirley’s indifference curves between 16-ounce cans and 8-ounce cans of beer. (b) Lorraine likes to have a beer while she watches “Masterpiece Theatre”. She only allows herself an 8-ounce glass of beer at any one time. Since her cat doesn’t like beer and she hates stale beer, if there is more than 8 ounces in the can she pours the excess into the sink. On the graph, draw some of Lorraine’s indifference curves. (c) Write a utility function that represents Shirley’s preferences between commodity bundles comprised of 8-ounce cans and 16-ounce cans of beer. Let X stand for the number of 8-ounce cans and Y stand for the number of 16-ounce cans. (d) Write a utility function that represents Lorraine’s preferences. represent Shirley’s (e) Would the function utility , 48 preferences? What about , 3? (f) Give an example of two commodity bundles such that Shirley likes the first bundle better than the second bundle, while Lorraine likes the second bundle better than the first bundle. 2. Randy hates studying both economics and history. The more time he spends studying either subject, the less happy he is. But Randy has