Question
Two answers required. These two functions are equal to each other for goods represented by quasi-linear utility functions. For 10 points each:
[10m] Name these two functions, whose partial derivatives are related by the Slutsky equation.
ANSWER: Marshallian demand function and Hicksian demand function [accept uncompensated demand function for Marshallian demand function; accept compensated demand function for Hicksian demand function; prompt on partial answers]
[10h] Two answers required. When utility is quasi-linear, these quantities are equivalent to consumer surplus. John Hicks introduced these quantities, the change in wealth needed for an agent to reach their original utility after a price change and the change in wealth needed to reach their new utility if a price change occurred.
ANSWER: compensating variation and equivalent variation [or CV and EV; prompt on partial answers]
[10e] These constructs are “vertically parallel” to each other for quasi-linear utility functions. These curves depict bundles of goods for which a consumer does not prefer one over the other.
ANSWER: indifference curves
<Social Science - Social Science - Economics>
Summary
| 2024 ARGOS @ Brandeis | 03/22/2025 | Y | 3 | 6.67 | 67% | 0% | 0% |
| 2024 ARGOS @ Chicago | 11/23/2024 | Y | 6 | 13.33 | 83% | 33% | 17% |
| 2024 ARGOS @ Christ's College | 12/14/2024 | Y | 3 | 6.67 | 67% | 0% | 0% |
| 2024 ARGOS @ Columbia | 11/23/2024 | Y | 3 | 16.67 | 67% | 67% | 33% |
| 2024 ARGOS @ McMaster | 11/17/2024 | Y | 5 | 10.00 | 60% | 20% | 20% |
| 2024 ARGOS @ Stanford | 02/22/2025 | Y | 3 | 16.67 | 100% | 67% | 0% |
| 2024 ARGOS Online | 03/22/2025 | Y | 3 | 13.33 | 67% | 67% | 0% |
Data
| CLEVELAND, THIS IS FOR YOU! | I wish it were possible to freeze time so I would never have to watch you retire | 10 | 0 | 10 | 20 |
| UBC | Thompson et al. | 10 | 0 | 10 | 20 |
| throw away your cards, rally in the streets | Aw we're so sorry to hear that maman died today, she gets five big booms | 0 | 0 | 0 | 0 |