Microeconomics: Theory and Applications with Calculus, 4e

Exercises

All exercises are available on MyEconLab; ${*}^{}=\text{answer}$ appears at the back of this book; $\mathbf{\text{M}}=\mathit{\text{mathematical}}$M = mathematical.

1. Uncompensated Consumer Welfare 

1. 1.1 Observe an auction on an online Web site such as eBay. Use the bidding information to draw a demand curve for the item and indicate the total willingness to pay for the good by the auction participants. (Hint: See the Application “Willingness to Pay and Consumer Surplus on eBay.”)

2. *1.2 If the inverse demand function for toasters is $p=60-q,$[&p|=|60|-|q,&] what is the consumer surplus if the price is 30? M

3. 1.3 If the inverse demand function for radios is $p=a-bq,$[&p|=|a|-|bq,&] what is the consumer surplus if the price is $a/2?$ M

4. 1.4 Hong and Wolak (2008) estimated that a 5% postal ...