DSE @2008-Paper discussion Please join

[kangkan]

Hi..can we discuss the paper here

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/28_june_2008_option_a.pdf

solution
 http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/dse2008_ans.pdf

I have doubts in question 16,17,21,27,55 and 56...what is the idea behind chain base index and an ideal price index?

Thanks in advance

[Granpa Simpson]

Ideal price index is Fisher Index which is the geometric mean of Laspayers and Pasche Index.

[kangkan]

Hey..i cudnt find anything in bernanke or dornbausch...or varian....can you send me a link?..can you help me  with 17..its seems very easy but i am not able to put the expression together

[Granpa Simpson]

http://mathematics.svtuition.org/2008/10/why-fisher-index-number-is-so-ideal.html

[The Villain]

Q17...this follows implicit diff
del z/del x=- fx/fz
solve this...u'll get ans as b

[The Villain]

For 21 use the median formula..
md=l+h/f*(N/2-C)
n=100
l=5
h=3
f=65
c=30
subs ...u will get ans as b

[Tanu_Jaiswal]

Right! Thanks :-)

[kangkan]

@ron..hey l is lower limit of the median class right...shudnt it be 2?

[The Villain]

@kangkan..tth median class is 2-4.99
here l is 2(lower lt of md class)
n=100
h=3
c=25
f=45
solve this...by mistake i wrote some wrong values above

[kangkan]

hey ron with l=2 i am getting median value as 2000 something  :(

[The Villain]

@kangkan..
2+3/45(100/2-30)
=3.33
:-)))

[kangkan]

 i realy shud use the calculator

[hs]

can sum1 help me with the budget contraint in q43

[kangkan]

Pc+Wr=w(L*)  where r=leisure,L*= labour endowmment

[akanksha]

can somebody solve 38,39,55 and 56 ??
what about 45th q..where is the labour demand ??

[mrittik]

for the problem 55, if we think very easily that we can all values n*1 or n*0 then n belongs to Natural No....then it is gotta very easily for all finite set of all real numbers x.

[kangkan]

@akansha..for 45..they are asking for mkt clearing wage...so Ld must be equal to L bar= Ls :)

[kangkan]

for 38
For the integrated firm,the profit max prob will be max 10K + 20F- K^2[(5-E)^2)+1] -F^2*E^2

Diffrebtiate with respect to E..you willget the optimum value of E

for 39..the profit max prob with tax t

max 10K -K^2[(5-E)^2 +1]-tE

Againg ,diffe to E..we get the ans

[akanksha]

thanx mrittik nd kangkan

kangkan
for q 39..ur equation doesnt contain F..whereas as the tax rate is in terms of F and K ?
and for q 45..L bar is labour endowment ryt and not labour demand.. can u plz tell the expression for labour demand
plz help..thanks

[kangkan]

Hi..for 39, the tax  on the level of effulent E...since, this tax will be on the on the firm producing the effulent,F wont enter the equation...

And for 45,can you upload a a pic of your working?i am unable to understand your doubt :)