University Microeconomics Assignment: Consumer Choice Problems Solved

This assignment presents solutions to a microeconomics problem set. The first problem analyzes consumer behavior, including demand functions, price changes, income effects, and the Slutsky equation. It examines how changes in the price of good 2 affect the demand for both goods, calculates optimal consumption bundles, and determines the income needed to maintain the initial utility level after a price change. The second problem delves into cost analysis, including marginal cost, average cost, and their intersection. The final section addresses price discrimination, examining the monopolist's pricing strategies in domestic and foreign markets and the impact of the internet on price discrimination strategies. The assignment provides a detailed analysis of these economic concepts, including graphical representations and calculations.