Assignments from the “Problems and applications” section of each chapter:
- Week 1: Chapter 3 – number 3 and Chapter 5 – number 2 (hw1.pdf, hw1_soln.pdf)
- Week 2: chpt 8 #1 and chpt 8 #5 (hw2_soln.pdf)
- Week 3: chpt 10 #4 and chpt 11 #1 (hw3_soln.pdf)
- Week 4: chpt 12 #1 and chpt 13 #1 (hw4_soln.pdf)
- Week 5: chpt 13 #3 and this (hw5_book_soln.pdf,hw5_opt_soln.pdf)
(Q)For homework problem #3, when its asking for the rental prices and the real wage, does it mean that we need to indicate if the rental prices or the real wage increases while L increases or do we need to calculate for a specific numerical answer, for instance, the amount increased? Thank you!
(A)You are asked for numerical answer. That is, you need to tell how much % the Y, R/P and W/P increases (or decreases). In case of labor, plug in 1.1L instead of L and then take the ratio of the amount you compare.