SAU PAPER

[Anjali]

@ron thanks , got it.
So ans for 22 will be D , right ?

[Anjali]

Just a query :
What will be the MU of an inferior good and that of an externality ( pollution ) ?
Options
-ve
+ve
0
Can't say

[jack]

All inferior good need not necessarily negative marginal utility, similarly, all inferior input need not negative marginal product. If these statement are true then your isoquant will not hold their standard shape and becomes upward sloping because more labor means more capital. So we need positive marginal product if good are inferior.

[jack]

Is anyone solve Q44?

[Anjali]

@Jack , could you please simplify your explanation ? I really didn't get it
And any final answer for ques 33 and 34 ?
Iam getting option D for both.
And 44 is my doubt as well. Also please try ques 50 , my solution is not matching with any of the options.

[Anjali]

And for 9th , the final answer is B or C ?

[Anjali]

For 10th are you sure its a?
And why I=0 ?
Don't you think that here b that is the responsiveness of I to interest rate is 0 ?
Infact LM curve slope is determined by k and h , so here can we not take it as unaffected that is option d ?

[The Villain]

Q 50...m getting d

[jack]

Q50
P=60-05Q
MR=60-Q
FC=10
Variable costs are Q+3 per unit, which means it is AVC
So VC=(Q+3)Q
TC=10+Q^2+3Q
MC=2Q+3
profit function=60-.5Q-10-Q^2-3Q
find dp/dQ ,put equal to 0
so we get
Q=19
put Q in profit function
and you get
531.5
option D

[Anjali]

I missed that AVC part. Thanks a ton @jack and @ron.
What about ques 33, 34 , and 10th ?

[jack]

My answers for 33 and 34 are D

[SoniaKapoor]

Please tell me how to do quest 35...

[ViV]

SOL : 33 (B) and 34 (A).
Jack if u r done with all the questions then please post the answer key of PART-B.

[Anjali]

@engravecharm please explain 33 and 34
Answers 21 onwards
21. C
22. D
23. B
24. Yet to do
25. C ( not sure )
26. C
27. D
28. D
29. Yet to do
30. Yet to do

[jack]

Q29
option b

[Anjali]

@jack what about other answers that I have posted ? Did you cross check ?

[Economics student]

X is planning  to go on a weekend  trip and he has a few places  in mind. However,  he has
two criteria on the basis of which he is going  to decide  at which place he wants  to go.
The primary  (the most important)  criterion  is how safe  (s) the place  is and the secondary
criterion  is how far it is from his home  (d). He would prefer  to go to a place which  is
safer and  ignore the distance. However, in comparing  two destinations which he thinks
are equally safe, he would  prefer  the one which requires him to travel a lesser  distance.
The  indifference curves in (s, d) domain are
(a)  horizontal
(b)  vertical
(c)  negatively  sloped
(d)  Do not exist

Please explain how to do.

Also, how to do the philip's curve question- Q 29?
And please explain why is the answer for 6th one d?

[The Villain]

@soloni..
These are lexicographic preferances...so IC  do not exist..
and sacrifice ratio is -1/alpha

[ViV]

33: M/P = 2Y-800 (i=10)
34: Y = 200+0.25(Y-200)+150+0.25Y-10(10)+250
     Y  = 450+0.5Y
      Y = 900
Substitute this in M/P = 2Y-800, M/P = 1000
So, M/P = 1000, 
Now, M/P = 2Y-80i Put M/P = 1000 and Y = 900 derived above. i = 10

[Economics student]

Thanks Ron.
also, are all the answers discussed here correct? Like for 2nd, i think its b. for 3rd i think its b and 4th i think its a. Please tell me why my answers are incorrect, in case they are. :)