Doubt ...micro

[SoniaKapoor]

[Akshay Jain]

Its a)
just use the properties of logs...
the utility functions are of cobb-douglas type...

[Homer Simpson]

At optimum, MRS (Rakesh) = market price ratio. same for the other person. thus their MRS's are equal

[SoniaKapoor]

Thanx Akshay////bt i didnt get ur pt

[Akshay Jain]

Both the consumers hav cobb douglas utility....so the eqm vl be at point where MRS of both will b eql....or both ICs are tangent to each other

[SoniaKapoor]

okay got it nww

[SoniaKapoor]

Akshay..Also pls suggest something abt gokhale paper...hw is the paper level?which areas i should focus on?Wt was the cutoff last yr?

[Akshay Jain]

Hi sonia..the level last year was easy as compared to their model ppr....just 6-7 questions were dere which reqaured sm thinking....otherwise all were direct especially maths and stats section.
they dont reveal cutoff so no idea about dat...sry...

[SoniaKapoor]

Thank you..you are a great help .