DSE 2012 DUCK PLEASE PLEASE HELP.

[Mauli]

http://econdse.org/wp-content/uploads/2012/07/2012-Option-A.pdf
 Q27 and Q33

juhi has explained it here. but , i am still not able to do this :(
please help.

http://discussion-forum.2150183.n2.nabble.com/DSE-2012-Q27-PARETO-EFFICIENCY-tp7582826.html;cid=1372156884448-746

[maahi]

27 ) preferences are concave so there ll be a corner soln .

[Prerna Rakheja]

Hi Mauli,

For ques 33, just plug in Yi* and Xi* as w1Yi and w2 Xi respectively and solve the normal equations to get values of B2 abd B2*.

You will see it turns out that B2* is in fact w1/w2 B2.

Hence the only option that seems to go with the above observation is c

[Mauli]

thankyou prerna:)
can you please help me with the other question as well.

[Mauli]

?

[riddhima]

Hey Mauli
For question 27, the first click is for concave preference as you said, also if you move one step and try and check if there is any other pareto optimal allocation with hit n trial method, you will arrive the same result

For the second query just plug in values and solve the equation!

Goodluck!

[Rizwan]

Pareto optimal condition must be pareto efficient and equitable this only ii is optimal