Economics Department, Faculty of Economics and Political Science English Section, Second Year Cairo University Intermediate Microeconomics

Theory Fall 2013 Dr. Heba Nassar, Dr. Abdel-Hameed Nawar Mr. Ahmed Ragab, Ms. Nesreen Selim Answer Key to Tutorial (2) on Chapter 2: Budget Constraint

I. TRUE-FALSE: 123456789False False False False False False True True False

II. MULTIPLE CHOICE QUESTIONS: 1- c 2- a 3- d 4- c 5- d 6- c 7- d 8- a 9- a 10- b

IIII. PROBLEMS: 1- At A there are 4 avocados and at B there are 8 units of beans. At C there are 4 avocados and at D there are 16 units of beans. 2+ Consumers budget set is the set of all consumption bundles such that the quantities are nonnegative and all consumption choices available to the consumer are affordable at given set of prices and but restricted by the size of the budget, i.e. income. ( ) *( )|