Re: doubts

Posted by shashi on Jun 14, 2009; 4:34pm
URL: http://discussion-forum.276.s1.nabble.com/doubts-tp3019376p3076147.html

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......