From Individual to Market Demand Functions Think of an economy containing n consumers, denoted by= 1, .. ,n. Consumer is' ordinary demand function for commodity j is

Monetary Measures of Gains-to- Trade You can buy as much rice as you wish at RMB1 per kilogram once you enter the gasoline market. Q: What is the most you would pay to enter the market?

What Are We doing in this Chapter? We apply our basic framework of consumer choice to study issues of choices across different time periods, e Again in terms of theoretical framework, not much is new!

The Purpose of this Chapter To begin to understand the art of building an economic model To begin to understand three basic elements of modeling in economics: Purpose Simplification through assumptions -Value judgment

Main issue Mean-Variance Utility Budget Constraints for Risky Assets Measuring Risk Capital Asset Pricing Model

Main Issue state-contingent- consumption plan Preferences Under Uncertainty and Expected utility risk- aversion,risk- loving, and risk- neutrality Competitive Insurance

assets An asset is a commodity that provides a flow of services over time. +E.g. a house, or a computer. .A financial asset provides a flow of money over time -a security

模拟试题六 1.某商品X的需求函数为: Qx=197000-100P+50P+0.1m+0.02A 其中:Py=300为商品y的价格; 家庭平均收入m=10000 广告费A=200000

一、劳伦斯曲线与基尼系数 1.劳伦斯曲线 劳伦斯曲线是用来反映社会收入分配(或财富分配)平均程度的曲线

边际生产力分配理论,仅从对要素的需求上 说明了分配问题,均衡价格分配理论是从要素的需 求和供给的平衡上说明要素价格的决定,即分配问题