DSE 2013 Paper Discussion

[kangkan]

none of the above....the money multiplier is 2.77

[The Villain]

@kangkan...in context to lex pref..i didnt get ur explanation for the 2nd part??why will excess demand not be zero??

[SoniaKapoor]

pls help me with quest 34-35..

[Akshay Jain]

34...An allocation is non enevy if an agent prefers his own allocation/endowment den that of the other's allocation endowment
consider the utility of agent A....UA(own allocation)=  4*alpha
and UA(B's allocation)= alpha+5
for non envy.....UA(own allocation)>=UA(B's allocation)
4*alpha>=alpha+5
3*alpha>=5
so alpha>=5/3

Similarly agent B prefers  his own allocation as from A allocation UB=0

so alpha=>5/3 for non envy...

[SoniaKapoor]

thanxx akshay...bt how did we get alpha +5???

[kangkan]

2ron..look ath mkt for x with px=2 and py=4...agent two's income is 40...so he will demand 20 units of good 1 and gent 1 will demand 0..but only 10 units are available..here excess demand will be negative(hence not equal to zero)

[Akshay Jain]

Put B's allocation in A's utility function.....u vl get alpha +5

[SoniaKapoor]

Thanxx akshay...can you suggest me a good numerical book for general eqm .Varain is not enough it seems for dse numericals.

[jack]

Please help me with Q.31

[neha 1]

pls explain ques 4

[kangkan]

Series 1 right?

[neha 1]

yes

[kangkan]

try using this diagram

[neha 1]

ques 7 i am getting a-c/2-b after solving it as cournot ..none of the options ..pls help

[neha 1]

ques 8 my answer is a-c+bc/2(1-b) again none of the options
pls help

[kangkan]

Hi..neha..can you paste your calculations..i am getting A+c/2-b

[neha 1]

ya sure..
first equation : p1= a+bp2-c/2
second eq :     p2=a+bp1-c/2
solving these two eqs i am gettng p1=p2=a-c/2-b

[kangkan]

Guys..some of our Amit sir pasted this key...some of our answers were wrong..we need to discuss

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/dse2013_ans.pdf

@all: can some help with 54 and q1....i am getting other answers

[Granpa Simpson]

For Q1 use Lagranges Mean Value Theorem..in the question we are required to find out dx/dt which is the velocity..according to LMVT dx/dt of f'(t) will pass through f(b)-f(a)/b-a at least once in [a,b] if f is continuous and derivable in the region...thus dx/dt=(100-0)/(20-0)=5..thus answer will be d.

[akanksha]

can somebody plz explain
q 41,42,48 ,49..