DSE 2011

[xyz123]

Can someone please help me with question 47, 49, 51?

Thanks

[kangkan]

series?..i have series 01

[The Villain]

Q49...draw edgewarth box...u will find every point is pareto efficient so ans is d..

[xyz123]

I also have series 1..

Okay thanks, I'll try by drawing edgeworth box :)

[kangkan]

we know the competitive equi lies on a line tha passes thru the endowment bundle and slope of price ratio..here we know the line passes through (6,1) and has a slope 1...we find that both both the endowment bundle given lies on the this line too...hence they both can be the endowmwnt bundles

[kangkan]

48..they will produce till the point that MC1=MC2...so 2a1=6q2 or q1=3q2....put his in q1+q2=20..we will get q1=15 and q2=5