ECON 120B, SPRING 1998  --  HOMEWORK #2


This assignment is due no later than 12:45 pm on Tuesday, May 19, 1998
(LATE PAPERS WILL NOT BE ACCEPTED).  It will carry a weight of 5% towards
the grade.  As before, team up with one or two more persons, do each
problem individually (otherwise you won't be well prepared for exams),
but submit a joint paper with all your names (max 3).  You are not
allowed to add your name later.  If you try to do that, I will consider
it a blatant attempt to cheat and give you zero points for the
assignment AND THE SECOND MID-TERM EXAM.  If your name appears on more
than one paper, the LOWER score will be recorded.


Do Exercises 4.3 and 4.9 of the fourth edition.