Since it is a fairly ¡­

Since it is a fairly long time until next lecture:

• A preliminary problem set for seminar #5 is available. "Preliminary" means that I will have covered the material if the seminar is moved as previously suggested, but I may or may not have to change it if that proposal is called off. Part of the problem set should be doable already.

• Someone requested more problems. I've copied problems from the previous textbook. Attached to my door, office 1243 (just to the right of the reception). I haven't copied for all of you (would probably be a too fat pile to get attached to the door), so if it is empty by tomorrow Thursday, I'll re-fill by Friday.

• The infamous problem 2 of seminar #4 was actually taken from this book (so you'll find it in the copies); inspecting these authors' solution, they did indeed not constrain to S being nonnegative. Allowing for negative subsidies does simplify (as it is clear that the other constraint will bind), but it is unreasonable that just because there is a deadweight loss for taxing consumers and subsidizing the producer, there is a negative loss for the opposite. (There are also additional reasons why we think the solution you got handed out, is better.)