Peter J Wilcoxen

Five Minute Exercises

Each entry is a link to a page with the original problem and the final numerical answer.   Entries marked with (+) have multiple short calculations based on a single set of information and some also have hints about the answers.  If you have questions about how to do any of them, please drop me a note or stop by my office.

Adverse Selection

Adverse Selection in a Used Car Market  
Adverse Selection in an Insurance Market  

Demand, Supply and Markets

Finding a Market Equilibrium  
Finding a Market Equilibrium with a Tax  
Finding a Market Equilibrium with a Subsidy  
Calculating Market Demand  
Market Equilibrium with Multiple Sellers  
Market Equilibrium with Multiple Buyers  
Computing Deadweight Loss  
Using Elasticities to Analyze a Tax  
Efficiency with a Positive Externality  
Efficiency with a Positive Network Externality  
Cost of a Subsidy  
Effect of a Subsidy on New Buyers  
Subsidy Needed to Achieve a Quantity Target (+)  
Equilibrium with a Tariff (+)  
Equilibrium with a Supply Quota (+)  
Effect of a Minimum Wage (+)  
Effect of a Price Ceiling (+)  

Household Choice

Price Change with Perfect Complements Preferences  
Price Change with Cobb-Douglas Preferences  
Compensating Variation with Cobb-Douglas Preferences  
Income Effect with Cobb-Douglas Preferences  
Substitution Effect with Cobb-Douglas Preferences  
Taxes and Perfect Complements Preferences  
Compensating Variation with Perfect Complements Preferences  
Policy Design with Cobb-Douglas Preferences  
Two-Period Intertemporal Choice with Perfect Complements Preferences  
Two-Period Intertemporal Choice with Cobb-Douglas Preferences  

Cost Benefit Analysis

Present Value of a Stream of Payments  
Present Value of a Delayed Infinite Stream  
Net Present Value of a Project with Delayed Benefits  
Net Present Value with Delayed Costs  
Net Present Value of a Project with Streams of Costs and Benefits  
Present Value of a Long Finite Stream  
Net Present Value  
Expected Value  
Expected Value and Fair Insurance  
Expected Net Present Value  
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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 01/16/2023