doubts

[namrata]

2004:6.I have got the answer (c) by applying the 1st law of welfare economics which states that competitive equilibrium is pareto efficient.so (c)is pareto effcient.Is anything wrong with this logic?
2004:7.My answer is (b).As a competitive equilibrium exists so px/py must exist.If(1,0)is the relative price then relative price doesnt exist.Is something wrong with my logic?
2004 10:could u please explain me how (a)is coming?My answer is (d).
2004:24.25:do we have to assume the economy achieves long run equilibrium?
2005:3.what is the answer
2006(15):How to show quasi convexity?
2006:22:My answer is b.How do we arrive to a?
2008:39.Could u explain how c is coming?
please answer these queries

[Kamal]

2006 15

To show quasi concavity use the basic definition
f(x)>=f(x0)

then wtd average of these should be greater than or equal to f(x0)

wts being lambda in between 0 & 1

for quasi convexity apply the above definition for -f

if -f is quasi concave then f will be qusi convex

In the question y<=x implies f(x)>=f(y)

Now the wtd average where the weights run from 0 to 1 will be greater than f(y)

The given function is hence both quasi convex and quasi concave

[shashi]

im answering few of ur question that are short

2004...6) max u2 st u1
 
999-x1=1000-y1
=) y1=x1+1
ans-D
TRY TO DO THE SAME WITH Q3 U WILL GET C-ANS


2004)...7)    AS SUPPLY OF Y IS GREATER THAN TOTAL DD OF Y ,SO PY=0

(PX,PY)=(1,0).....THIS IS SHORT EXPLANATION IM PROVIDING JUST TAKE A CAREFUL LOOK AT THE CONCEPT OF DEMAND,UTILITY,EXCHANGE FROM VARIAN AND ITS WORKBOOK TO CONVINCE UR SELF

[shashi]

2005...3) HINT IS TO CONSTRUCT AGENT 2 DD FUNCTION

A)PX/PY=#INFINITY>1, SO X1=O X2=M/PY=50PX/PY>TOTAL ENDOWMENT OF AGENT




C)PX/PY<1
X1=50....AND X1 HAS SOME MKT PRICE SO DD WILL BE FINITE


B)PX/PY<1   SINCE  PX=0 CONSUMER DD INFINITE AMT .,CASE OF PERFECT SUBSTITUTE SO B CANT BE ANS


ANS-C....TRY TO CONVINCE UR SELF BY GOING DETAIL INTO THE MATTER......