Miceatconomian Cam Crane 3- UW, 0)= MO vin a)NO | VWO-WMIO > tie Ul;O)= KO) Gold tl + 8) ULGO)= a0 + U(B;C) = Hn( 8B; £) lt ne | | adect Complement ) Aviom (esi ee ( (ys Ya) 20a)» Weakly feel oI ects > Tf Thi, Henne (x, 06.) 06%) He’ axioms Tromitine ns a); Ye) <5[0e,;Me}7 0511 Be) (Wii Ye) 7B Beda wl teh fon + Conf, Sc se «Hn (aca, ei) fn ani 1 nal “Peete ia my Eas roving ae ee PSS a led weal Cota y ta. a lt stich) fla % loth \ Tk nb Dee) =C4:3) ‘ Haw donde 1s); 8) Lal Se fae Ont thea Hit Nala F whin 28. Ho Ue (oe) a ARS yg (26,74) * | lial sf Mali ted’ he 1 he consumption of good { meray th Katqnal Rate of Sulstétution deowasen, c) Ulu, 1%) Fea 4 f Trubial demlh, Co oe (43) T Maw Landa; a)? loey7 8 + n(3)-tnl B/ Ub = Uy 240 fn 68) 206, odo (8) my! (w ta bt (cj OnlMellOce MRS ya (ot) * )-|- fete: et = Hef te T/ the con, as Hal ol ee eee (its iad tn grid Sipe ak He Rags Baa a) a Budget Cosbiaentssce 14 16 18 20 Ny Olina) end, (Corer Stn) -»UW0) + 0:50) ‘ 38 a) ae = Haas Oftimlnd (ote Soliton.) (W,0}=(B) 20) Pelé ss > Budget Conlin Ohtimal Pew: ag Ut, Gave (v;,0)-(8,3) 1s Now Budget Galant S$ 19 15 40 25 49 35 40 4S SO yy Dig nes: ¢) 6fitial Poet: (1,0) = (0-20)3- UR; V) =dnl@) V a) Fel of Me cma Hi U 0-52.60 ) see yte 0480 X"HO/ ulti) = Gx? 9Pngp" 6° 2 2 prlé G 3.00 6-90 45,04 | 0 vox) 6 Say GSO 159,47 (0- UG;x)}- 2X” a) Now Gltemal hice * xt GB Ix eso0 Gt yt G50 The increase im the fui of gm wil reduc th quail th god consumed by 50 anib, t)i) S=50«R, o S=SOx SIDE x) Conoraing \dxilion a be Slutsky.c)No,ae be will be able be manana oy lilly dt ore ole fon. Now fav let t= 2Ssl00 | 92/ ofA” ge oa.un oof Ms ee oven consumer em tims which » darackrattcal c ty fly, hn ata i Hg lh dh oe dh alelty with He mabidy an Utility? GX jay” gan" Con forsaling Variation & ta Hicks we syos (QgH¥?(081 -00"0,3" 08" ctx (GAP BY suia0 aE ana Be w [te 169,13 The amour slody gue bat is am oxe wf 30876. Jk ia en ald be wom dee wo sabsitilion of decane whom ie ad (Val Whee (Vik Ky , mean debt hash cif Vande Hal Maps th at Liy ndaaged off: a fie Moae 0s et nll Hau -NO oO ad 7 ed i ates 8 te Simi nee : 30 > "Tol lied Ret sa Indo) Digs Contteaott (Don Gave) Pr) b repeat earl 1S id Badge (oll ai (rad ee) 90 35 40 6 10 48 2 asSunto Hal of at 1» given 0 subsidy & Kh utity const; Comfemualling Vowiation ata ticks; Kael a Bl oe fn Lincome lL, ) Sng i) mo sedation fd ag uly conn on Lhe nal Lund affblo, in ths ; k-subidy given can edher be c lk ik ib ie rea! oof L, inion oY 10R sonst mt 4 r fd- ree Vedn(R)V P,2500E is 0E fe '2Sé Damand Famitions: Pp 5 Are Fe | fr Ve z {fat i fei 0 f#et 2) Tmnufiol Bundle (P=10€) Feral Bundh(Pe2Sé) RY=30 it'-60 3 v3 In 9 Pim dit Tada mo nconme af Icvl-lacsl= fate6) Cnhnaatng\bvaton * Initial U : VIR W)= tall V= ult, %4)= tC 30)* 3 o U(30:%6) nga) & + Comfonaling Voiakos& ty Hack inl70)-$- on ) (E ») w Inf D)e & = An 60)+ Le © /1 299,06 > Mocnary income b Kap ldo ; He tw foes CVucen= AN = H=M = 294,06 -S 107, 6/ Core Vaxiation’ Famal W UCR; v) Rauckon hel ab 8. d flmjl) dK a) Te marginal feaduckaely ws Hh irae froduchky quten a clas fond incense an One AM huts. np -2 i (AL), ARQ fal Pedactindy of bear D6 MP (ALK), oMPee (fg Paluciof Hof K mi son tee ae a a eek pe eh q J fduction fo Kmow.PBS A, Gy 6 RAE 8 tol at oa ©) Candiiono) Demand Fundtions: gf Barlnars| lt a lNATS| £2 4)0:8L of Pete = MATS OWE Ria =tni | Zp Reel MATS] 0 ’/ el MRTSI DCHECVC@ CFC KWL eC COBR HL © & C= {00+ WA ‘ 3a) ne-Oe *Th Avec | Variabls Cats ave ol” than ‘minim wh ¢ VC) 29 o WOON VC we Abie. (He) -0% Ser ae Ae? G arc w MO Vey HLH 6 LE rm 0 AEE w= es ticNNC/ The Aveege 2 Toki ay Bo tax dor when AAIC =o » (Eh 208 (Thad falas. 04 20 °° =f onli o Me. Te © AC Tee MCAT of @£) 50 (TC)a-Q-(OheTC 5, VEO-1C MC, Te eovc> Kavos Ho 4-10 = Goua?O90 tr KJQeSK: a) Short -yun Totil Cat Function: TC=001A2-090% (WOK ~Anetcge (ot in th Shoat -xum: Oar. (0,040?-090% (LOSE AC> Tew AC > e 5AC=0010=0,90« 1-H SE x/ Moxgunal Cost im the Shoat sun? A> BE coc LOGE 090 RIO SE la @ MC Oia" 1,3011 ¥/ 4) Im is Kw m Lap iad ard seul, thor, inrmie d 1 Hed casts um aedor or ow ota. oe (t1-WQ+5K) 209 (0Kk=-QeK= g ae (ot cee : TC =O I 90't KI *SK'm Te-a0H090% (i foe) ” TC =00107-090' 1-8» 38 oa es wTC=0,010"-0950 ‘way Sa. =| ontigitntgionbgp NI ee I tn 1 omit J fs iF = Max 4Q-(00407-095Q' 1Q) St:P=4 , TC= 0OH209590' 12 Fiat Orde (nltton? [PO-(q0 10-0950 Ha]}, 0 (PO), = (ACSA idk @ 49490190110 120" 19Q+# =O. #0 = SEMgFbODT 122A vege LINOIS - 719408 yg - IDS Qe APIO a= WIS v= UMS 2Q=(0/-> Optimal bel of feoducton Teil Cail / ; i TC =OOUG-0ISA*HO2TC=004 (070, 9ISHO +1610 © #TC= 10-9540 TC*55/ TC=004020,90% (11-K)Q1 SK SSO MO-09410% (1 KO SK “49 SS =40-904110 +S KOK @ & SK=I0K =S5+50- (19 = SK=IOK=$ © SH*iOKHS =O 8 wpe HOUSES yp. 1980, - ° KV Gtomal inskbld cofacity Radi Te pateett 1O-SSe= -15f fit of the famWe allo 0k =(001R “seem &6= ONG 1, 90st 010019 0:5 jo ADF SN HeO1S a=! +B ean 7 Sera wa-tplnat vat a= fs/ ft elo froduaon Tl (ils: TC= D000, 950A 2TC=0,04410,S*-095«10S% 1419S 6 8 TC=78)105- 148, 18751 137,S= 1C=67 1875 TC= 0,040? 090" (1K) Q1SKé © 6715S =O Ina, S299MS¥(t ).5+5KE 367, 187S= 75, 1S - 140,625+137,5- 12SWrSKe we SKLIYSK=- 2810S 5K 12,5K+7 81S Oe 11S - 1 mK 1BS10 og wk -125/6 inal ald cally Pr 4 Bs -“TCel 6115-67, 1875 911-456 1S7S ON =7, ee d. Me4- Demand Fanition’ Y¥=000- joagP Tob Costs TC gitqtl0 cia «Mate Produaoes Demand Conte: 0 A<3 Qt Heol ea +09 Z p23 Necionel [Domottic Praducoey Demand Guere: Me « = Mie Poy e191) Fak Gude ( Condition’ , [P(g =O = (Ph =(04ehP= Dagrteogee SPS ele 4 fea 2 Suff ly (om 00 foc aach abmestic fax Qe: ae pa (7 Aggie 5 Shy Cmce fr come: fem aati ot Pel Ne porsco isPs {D1 P23$00 10 1500 op as $009 35D Yap ism Sav FI COW 0 “All Egan: OP 6000- (c00-P=Q”= 6000 3000 “ af + Guan frcduad ly aock firms if gi SPS 297 58S 10f . ‘ol 7 ‘sack donut: fi , are Peg (O19 910 we 3,0-O1«10% 4010) -30-Cioe0 1 =-O/ G3, = SCDAP-SD + Olom=1500-500 @Q5ont000/ Lin => Oem w Tinf? 90001000 we Lin = 2000/ 0. . uf PE ‘ Qe pins) ep 4 1500, [| P>4 = BOD -1000P > Gea, nat fH gua, Pf a ee ee ancl equiilcunTCg)-Rels RT mTClg) M127 Tele sel fran rg) Eg | Te jae recs aan ei te answer bbe felt amaaimazation | Hal Mer TC, Hichy [G0] i h ui = Fan Onder Conditions : f0% Pe [tea] oP ot 1 P= OSpi- Yeogi=de(Pad) = ogi dP > Shal-tam mf fly aoe Sei 4) m9! = O100.95 2@ DCA) @ Osan? Mcp» hows Saffly ¢) «Harket opwitelawm: (=)00P + i, >. “400 02-0 = JDP CD = 100-J00P 2 “P= lane “i hy « Production tee sock fe fA ag HO ogEin, tach fixe: gece -S o9t5 ff ed ¢f sadder itm: Py (Ogf get0) ef =40- (0,05 a5) 0160-49521-(05/ * Inmpods: oom = SOP SD 1500 Tnh=0"- Om © Limp #2000 1500 mm Tie SOY + Froduar Surfs PSeT m= P5= fy Sxl0eP5= 1150/ » Gouna Ronan: Initial 53 2523-5 = 910 th Tait dad (0! giege lO) oll 0 (Q.D{0x10) 21 =30-0 otOf lent e500? a iom= {00 0-05 ® mf 9000-0 = mf Tmt 2DY » Convunn Sula 63 &S9m78CS= 4500p + Prodan Sable fe Spse0-10-P5/ «= Groveennurit Hennes ReleOah of HSO@R=SOY/ | Re bint RY «Tot sella Tobl Su de y TS=Rt 6 CSET S25Ct INDO |) TSé =UPS+CS@TS =O,0HISGOS 215-3750, =15=450f Suna th Hil hho Abe es aitation 0 tower Hae dhe bal th Bn be dn tile iirc cry. SE ee ae Lamb ‘font Pada pan fi ge 4 (UT) "Te a) Lm Be abot -wum Te4 agi mati} Ay eogie BLL gis Wide ua =U "offs ae Bat ‘@PMldadie oo ere geen ae ir=Poy- Teer 4eta- HLA g w ir - AL Ge eN6-6-SeT-1y/ 4) Obom=200Pt 0g = YOOP+ 800 Ose * 200P 400 Now Hor Kat equilibaaum: OF OOP: (= 1000 -40pP 00? « Ps QD=1000-100P = a0 = 140) = Pa / a a ee Sa Kg id bs ; 9°"t00 1200 9 {lf Profit be ch ile the ws ~beT16- 182 — , - el $e 8-16-82 ran satan fobatisle soc Mo / PSemt @PScoe4 4 @P5= 40 Poem P1008 PS=BN0G/ sConsuymnon Soy Caan cs Ol0/ + Adding 6 tha , we a also aware thal Ate fot will only sel whom fea | Mw wake. A Highs ‘ton lk avarye cat AC, and, Heese, suse suff sully wall NCAA AC # Bp rion IOP AOD $9182 Mp0 A 2 2B w pol nf2 tomspgngoG age Groplicallyc= ies from the mal curse 7 fone quality by cath foam AC ee: 5pird0 = f: Of | Bees aqualelti: ee ene 22009 9 -50/ ees Woop = (90000-1000) =G= ae pre ie, Decl Funclion: = (S0Q00-4COP fn pili i The shad” um Hi cose fi ol. el fo ema Q's ee pe dc i 150000 uogP = 80000150 000- oop ~4aoP Foca =P-1 “loge “tm fh’s no fet, yn elrve 10 ae ae Af ome =(DePelay/ ci. *S0OD (OOP Ol) =1S000-400«100 A100) = uo aa8 J o z ee - NejPt BOPP OEE per Prats HstS0-0) do- (900+5). Hig (S00-0')-200-5 Hic -'30-S a Ta Gador Condition’ BT -0 © 04GN-S);-0 10.0 #10 aomaris-fyinlgaty Hoel Pri: P=50-Q =P-S0-1S =P* 35/ eo leans P.Q-(00:09) 21 = 15:35- (004515) © 211-515-305 #11-20f Crophially . 4 erm will preadwce snd Abe fant at whieh 2 Conse uso Hof ssn cof fat keg fin maton 3 60 f0 1 DY) Fah dog hl ls nck dof welt um : ols yh soit a igual b te De) dae, en) tld ete owt lat le Mote Te wauldn eu ana efainy a cna would fe cml cold tf Wont can uf noe fia dihcimination Ate fas eet “ BE Frere tte cat | aDA malural hy A fixed cons and tov and consbait racqcnal cats which rat danny Nea Bea foal bap Yalu Ga Hal we fae daca AC oe AC=I0 with sah fone ~ S~Toltd Cost Function: ay an oat =14-3Q A} He. ne Gs yarn 30) -(60«11), Hee (-30+340)-(60 +44) >t bd (ondilion: BE <0 @ HC=HR 2 (30210) =1-€0-[1)e - 60s =the = 60 bak =F Proll Mowmiping Cut Dabeiirg the monopolistic Palit ae tf «1 -3:3 & P= (S/ fet Mamoyg Ra Kenof dist 'n eee TC 2 T= PaQ- (60011) 217 -A5x3-( 6x31) 21 YS-d9 © wut o tenet P= HC P60 P6flafiey tine ida Undor the domard cunve : P=L4-3Q 2 6 Deloximinirg Lh, quill ot - e 1 o0heP- 43,3 w beuge PAS/ Al th Honofotot. ’ ae Te PsQ- COT EASr3- (6x3 +t!) OT=45 -19 217-46,ee h ld “Tone wend rae *Gl0.)- 0544 ACHR © He “HR Maha, io ahd, ee 10-10, (qsceMO-h-llogal, ~ [0.14 10-d. HGeHR {oe aie =L Cul ie ds 0-0, Q,20%Y if Pl) 10-4 PLU P= TC = 1-P2a* (620, 10SGE40ull =T1=6e4- -fotiga) (0500 w14-(8+40) = 12418 1811-6 4-Damand Fiction: 0° (P) =96000-8S0P FED Cott Fania: G(,) #0040) + 1201+ 230 ClOx _ = 0.0905 + ¥20,* 4000 a)Tna monplite sitiation we Krow Hal foot sb moximijed “Hf 2 Har MR ee (00,5000 (010-g24), Hce- Hh [tect aon’ ¥D—4000),, fou 1 ace 104- Be stare 2 [fra ‘QO 200,72 fe ~ igoeabsors2 ~ hfe 32 _ |i 08S.5/, 6 Told Gul "la “6677 dak hey B010,00 “10S, St Fe O*(713df Petol- foe eP101- EER? P= 97,15/ 2p fore | PQ TC 2 11-P.0- lla aos) ao 1 OPP |Ly th monofolat frie doseimanaa “tsa an) Mer, Hac. TC. Host O440)-0-( 60.) ee(N0-¥0) 0 a -O of aNd (ri BO 0-6 = 50-18 "= 205 ffm PeIM- Yl’ Pel Yxl,d5 «9 PadY-9 2 P2 (sf galt Hoopes fei fat Suahy Te PaQ* 102 1=159,05 (6d A541) T= 33,75 -145 Ife 425/ Wat Sialy : fat Mika, Mic S100). 0- (60H), Ael4a-00'-(60) BE 0040-100") (60st “24004 ~be Beara iii . ae siecue te 100 7S©P=AN-9 os PL 15 f-> ai lt in Wet Te “0 (1CFC) T= gs: (607541) ef 11,95 YS eTf= OY (ae i Me we cam conde Hat frie detcamanation a) PG