Introductory Microeconomics, Autumn Term Essays

Tips on essay writing:

Word length: 500 900. Answer the question: Dont write everything you know about the topic. Focus on the question. Diagrams: most (but not all) of these essays require iagrams Models: !ll the essays require a iscussion of one" or more" of the economic mo els taught uring the course. This means you must:

set out the mo el escribe its results (characteristics of the equilibrium" etc) comment on the welfare properties of the mo el use the model to answer the question.

Economic Theory: #f you fin you are writing an essay that oes not use any of the theory taught in the course" you are writing the wrong essay$

Introductory Microeconomics, Autumn Term Essays

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Introductory Microeconomics, Autumn Term Essays

I. Supply and Demand
8. ;The octrine of laisse< = faire will not work in the material worl . #t has le to the black market an the capitalist 5ungle. 'e must have planning an ration books an controls" or millions of people will have nowhere to live an nothing to eat.> (%. ?. Forster" 8*.2) Do you agree with this statement@ 1. (efore the collapse of communism (erlin was a ivi e city. !fter the (erlin wall came own movement between %ast an 'est became possible. 'hat happene to the income of ta-i rivers" an fares pai by consumers" in %ast an 'est (erlin after unification; given that living stan ar s are much higher in 'est than in %ast (erlin. !ssume the market for ta-i cabs is competitive. 3. !uction houses (such as &othebyAs) selling Aol mastersA" recently a e a AbuyerAs premiumA to the AsellerAs premiumA they ha tra itionally charge . !nalyse the effect of this on the net price receive by the seller an the gross price pai by the buyer.

II. Consumer Theory

.. :se the income an substitution effect iagram to erive a eman curve for a normal" an inferior" an +iffen goo . +ive an intuitive e-planation for the ifferences in eman for each type of goo . ). &how" using the incomeBleisure iagram" how to erive a supply curve for labour. :se the mo el to analyse the impact of an increase in income ta-es on labour supply. 2. ! consumer who is a len er will remain a len er even after a cut in interest rates. #s the consumer better or worse of after the interest rate re uction@ #f the consumer becomes a borrower after the change is he better or worse off@