dse 2004

[Shefali]

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/26_jun_2004_option_a.pdf


pls help me with quest 13-14 .

[Akshay Jain]

[Akshay Jain]

in this sol alpha is the amount of lumpsum subsidy that shud be given to the consumer

[Shefali]

Thanx Akshay...got first quest
in second one bt how did you get x as m/2px and y as m/2py?

[Akshay Jain]

If u maximize the cobb-douglas utility function s.t.d budget constraint dn u will get the marshallian demand functions of the form that I used in above solution.....
general form is x*,y*= ((a/(a+b))*M/Px,((b/(a+b))*M/Py)

visit  this link....it may help u
http://www.google.com/url?q=http://njsanders.people.wm.edu/100A/Deriving_Demand_Functions_Examples.pdf&sa=U&ei=iUqkU9jmOtCKuATpzYDoCg&ved=0CB0QFjAJ&usg=AFQjCNFKk5QExKYjmx8tRb95FhUfHZugpw