Due by email June 27. Please bring a hard copy to class. You may collaborate in groups of up to three.
1. Spell out in words an economic problem, the solution for which involves math. Such a solution may involve geometry, graphs, algebra, calculus, or even a use of a property of numbers.
2. If you have a solution, keep it to yourself. Be prepared to explain whether you understand the solution. It’s ok not to have a solution, but you have to be prepared to challenge your classmates to give their solutions.
Hints: The problem may be a small almost trivial one, but should be interesting enough for class discussion. You may use any materials you can find in books or the Internet. You may seek help from students who have already taken the course on mathematical economics.
Just for illustration, here’s an example of such a problem from consumer theory:
“Define convexity in relation to indifference curves as representations of the utility function of a consumer. What might be the properties of these indifference curves if the goods considered are perfect substitutes? What if the goods are complements? What if the goods are imperfect substitutes?”
Extra credit for valor. You may submit the illustrative problem given above, but only if you have answers that you can defend in class.
Extra credit also for submissions of an easy but very illuminating question that shows the use of math in economics.