J.N.U. @sir

[nidhi]

hi sir,please provide me answer of these question:

Q.1: In closed economy in which the GDP is growing at 7 per cent per annum and the population at 2 per cent per annum,the income elasticity of demand for food is 0.4.If food prices are determined by demand and supply at what rate must food supply increase ,if the price of food is to remain constant?

Q.2: In an economy with only two goods X and Y.The price of x increased from 1 in period 1 to 1.5 in period 2,while that of Y remained constant at 1.Consumer A consumed 2 units of X and 3 Units of Y in period 1,and 3 units of X and 2 units of y in period 2.Consumer B consumed 3 units of x and 2 units of y in period 1 and 1 unit of X and 3 units of Y in period 2.Assuming that tastes of these two individuals have not changed,which individual is clearly better off in period 2 compared to period 1?

Thanks

Consider the following components of Balance of Paymnts:
1. Merchandise Trade account
2. Invisibles account
3. capital account
4. none of these

State the category to wch the transactions belong?
1. External commercial borrowing
2. Royalty paymnts for technology
3. import of capital eqipment
4.Purchase of foreign securitiies
5.Loans from world bank
6. Unilateral payments for worker technology

for the 1st ques, i think tht the ans is 2%...
BECOZ % CHANGE IN INCOME IS 5% n applying the elasticity formula..

for the 2nd one consumer 1 is better off..

[sonal]

hi neha cud u plz explain ans 2

[SANO]

hi nidhi, neha.

here in the second question,
                             consumer A consumes 3units of X and 2 units of Y , while the consumer B consumes 1 unit of X and 3 units of Y

[SANO]

sorry.. i forgot to complete.
 so CONSUMER A IS BETTER OFF