A: Instructions

1. Creat3 a consumer model that shows how economists explains the consumer choice between two products (X & Y) that maximize the consumer utility. Do not use numbers. Just graphs and detailedexplanation for the dynamics of the model. Make sure to explain the convexity of the indifference curve and what does it mean. (5points)

1. Show why the equilibrium point (tangency) shows the best bundle of X & Y and that any other point will not reflect a bundle that maximize consumers utility. (5points)

1. Derive the demand function from the consumer theory. Do not use numbers. Just graphsand

detailedexplanation. (5 points)

1. Analyze the connection between the price elasticity of the demand function to the consumer model. In other words, explain how the consumer model might explain the level of the price elasticity on the demand function (10points)

1. Creat3 a firm model that shows how economists explains the firm level of production that maximize its profit. Do not use numbers. Just graphs and detailedexplanation. Make sure to explain the concavity of the production function and what does it mean. (5Points)

1. Show why the equilibrium point shows the maximum possible profit & and that any other point will not reflect a bundle that maximize the firm profit. (5Points)

1. Derive the supply function from the firm theory. Do not use numbers. Just graphs anddetailed

explanation. (5 Points)

1. Creat3 or collect data set for variables from your selection (one dependent variable and at least two independent variables). ANY variables you choose are fine. Perform multiple regression analysis to estimate the model and make sure to write the regression equation. Discuss the results and interpret the value of the slope, intercept, R² and the p values. Your interpretation for these values is very important. Be detailed and analytical as much as you can.(10points)