There were two mistakes in ¡­

There were two mistakes in exercise 4 for this (the last) week. The utility function in 4(b) has a positive constant, alpha, and there should be a minus sign in front of the "e". Also, the alpha in the solution in 4(c) for the equilibrium price should be in the exponent. Sorry. A corrected version of the whole 11-page document has been made available. Only page 11 has been changed.