Economics 711: Assignments

Many assignments will be drawn from the collection listed below:

Micro Problems:

Many of the questions are at an intermediate level (but you won't be told which ones until it is too late). In most cases, it is a good idea to draw diagrams (if you find yourself differentiating a Lagrangean you are probably lost, unless you already know the answer).

Assignments will normally be made on Tuesdays, due on Monday, returned on Friday.

Cumulative list:
2, 11, 12, 23, 27, 53, 55, 57, 58, 69, 78 , 89, 95, 100, 101, 102, 103, 104;
10.C.2, 10.C.7, 10.E.3, 11.B.1, 11.C.3, 11.D.5, 12.C.5, 12.C.14, 12.C.18, 15.B.6

Assignment 1:

Problems 2, 12, 100, 101 (from the collection listed above)
10.C.2 (from the Mas-Colell text)

Due: 12 noon, Monday, November 7 (in TA box)

Assignment 2:
Problems 55, 57, 58; 10.C.7, 10.E.3, and 11.B.1
Due: 12 noon, Monday, November 14

Assignment 3:
Problems 11, 89, 103, 104; 11.C.3 and 11.D.5
Due: 12 noon, Monday, November 21

  1. A winemaker has produced 10 bottles of fine wine. There is one potential consumer, who values the wine at $100 (per bottle), if consumed now. Next year, the wine will be even better, and the consumer would then be willing to pay $120 for it. The winemaker has no use for the wine, but has other ways to spend money. The consumer discounts future consumption at 20% per year (meaning that $10 worth of consumption next year is worth $8 now). The winemaker discounts future consumption at 10% per year (meaning that $10 worth of consumption next year is worth $9 now). The consumer has $2,000 to spend (on wine, or other things). Money can be held until next year, but the interest rate is zero.

    Suppose the winemaker sells all of the wine now for $95 a bottle. Is this efficient? What is the set of Pareto optimal allocations?

Assignment 4:
Problems 27, 69, 95; 12.C.14 and 12.C.18.
Due: 12 noon, Monday, November 28

Assignment 5:
Problems 23, 53, 78, 102; 12.C.5 and 15.B.6
Due: 12 noon, Monday, December 5

Assignment 6:
Problems 16 24 , 33 , 87 ; 16.E.1, 17.C.3
Due: 12 noon, Monday, December 12

The End