Re: sample questions of ISI ME 2 , 2010

Posted by priyanka p on May 04, 2010; 5:40am
URL: http://discussion-forum.276.s1.nabble.com/sample-questions-of-ISI-ME-2-2010-tp4990586p5001816.html

hi sonal,  in q3 (b) first write down the dd fns for business and economy class as p1=a1-b1q1    and   p2=a2-b2q2     now first see for business class, eqauate  MR1=MC  ie   a1-2b1q1 shuld be equal to 50  we gwt q1= (a1-50)/2b1 ------------eqn 1.    Now calculate p1 by pluggin this value in the inverse dd fn u get p1=25 + a1/2---------eqn 2.   We have  pofit maximizing levels of quantity and price ie 1500 and 200 respectvly, use them in eqn 1 and 2 to get values of a1 and b1.  thus u get the dd fn.   similarly for economy class