DSE 2009 Paper Discussion

[Granpa Simpson]

For a perfect competitor w=VMPL=p.MP and for a monopolist w=MRPL=MRL*MPL.

[neha:)]

Thanks Subhayu!

[ashutosh]

Can someone help me with Q53.

I am getting c as answer. How will the equilibrium value of e increase.?

Please someone comment.

[ViV]

I guess you are talking about Q33.
Here we are in (Y,e) space.
differentiate LM equation with respect to P. you will get dy/dp<0. In figure take IS-LM in (Y,e) space.
Now, Exogenous increase in P shifts the LM curve leftward becasue(dy/dp<0). so new equilibrium will be at lower y and higher e.

[ashutosh]

Thanks ViV :))

[akanksha]

can somebody explain q 27..m getting both (5,1)  and 4,2) as the ans ??

[ashutosh]

It cannot be (5,1)
You can check this by putting it back into equations-

f(5,2,7)
x1= 5   x2= 2   T= 6
 
5,1 cannot be solution as -
 5= min (a, 5)      
The above equation means that a=>5                  

1=min(a,2)
The above equation means that a=1.
which is contradictory.

[akanksha]

ya right.thanx ashtosh:)

[xyz123]

Isn't the answer of 21 coming to be (a)?

[econ14]

hey plz help q17 part b

[Ridhika]

@subhayu I'm sure you got q24 .. please tell me how to find the precise linear relationship between the vectors ? I'm not getting it..

----- Reply message -----
From: "sandeep pandey [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: DSE 2009 Paper Discussion
Date: Sun, Jun 22, 2014 5:43 PM

hey plz help q17 part b

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[Ridhika]

And How are you guys approaching 46? I took u = (5+x)^(1/5)(y)^(4/5) and the budget constraint as 50x +10y=750 .. This however leads to the answer d (10 books and 50 movies) not the required answer b (5 book and 75 movies).. what am i missing?

[ViV]

take 1000 instead of 750.
In next question take 1000 + 10X

[Ridhika]

I got the next one.. but in this one I'm stuck... So ur saying take 1000 and as long as he buys > or = to 5 books the grant actually doesn't matter?

----- Reply message -----
From: "ViV [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: DSE 2009 Paper Discussion
Date: Mon, Jun 23, 2014 6:27 PM

take 1000 instead of 750.
In next question take 1000 + 10X

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[ViV]

for this question I am getting book =3 when 1000 is income using Lagrange but 250 is for books. So he will buy 5 books 5*50= 250 and remaining 750/10=75 movies.

[Ridhika]

Got u ! This makes sense ! Thanks a lot viv! :)

----- Reply message -----
From: "ViV [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: DSE 2009 Paper Discussion
Date: Mon, Jun 23, 2014 6:37 PM

for this question I am getting book =3 when 1000 is income using Lagrange but 250 is for books. So he will buy 5 books 5*50= 250 and remaining 750/10=75 movies.

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[SoniaKapoor]

How u got utility as  u = (5+x)^(1/5)(y)^(4/5)

[ViV]

[ViV]

Sonia take Lagrange. U hv given utility fun and budget constraint..

[Ridhika]

Basically I assumed that since preferences are convex he will always consume all of the book fund . So x=5 is certain. Then his utility function became  u = (5+x)^(1/5)(y)^(4/5) and in bc I only took y=750.. 

----- Reply message -----
From: "SoniaKapoor [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: DSE 2009 Paper Discussion
Date: Mon, Jun 23, 2014 6:40 PM

How u got utility as  u = (5+x)^(1/5)(y)^(4/5)

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