sample questions of ISI ME 2 , 2010

Posted by vishruti on May 03, 2010; 9:18am
URL: http://discussion-forum.276.s1.nabble.com/sample-questions-of-ISI-ME-2-2010-tp4990586p4996958.html

Answer 2
 
a) q1 = q2 = [a - m ] /[ 2 + s ]
 
b) direct demand functions are
 
q1 = ( a/1+s ) - ( p1 / 1 - s^2 ) + (sp2 / 1 - s^2)
 
q2 = (a/1+s) - ( p2/1 - s^2 ) + (sp1 / 1 - s^2)
 
c) p1 = p2 = [(1-s)a + m] / [s + 2]