1. Use the supply and demand model to explain the evolution of the price of gold and silver during the last decade (20 marks; a, b).
2. Explain the five properties that an indifference curve must fulfill. Use diagrams to support your explanation (10 marks; b).
3. Considering the constrained consumer choice problem for two normal goods, explain the process by which the consumer would choose how much to consume of each good. Use the constrained optimization model supported by graphical and mathematical analysis in your answer (20 marks; a, b).
Learning Outcomes
(a) Analyze and explain the economic behavior of individual households and firms within the context of an uncertain environment and limited information.
(b) Apply micro-economic theory to the analysis of contemporary issues.
(c) Examine the limitations of micro-economic theory in relation to production and consumption issues.
Can you use the book which is : Jeffrey M.Perloff / Micro-economics it is important that you do so please!