Re: dse-2009

Posted by nidhi aggarwal on Jun 20, 2010; 1:08pm
URL: http://discussion-forum.276.s1.nabble.com/dse-2009-tp5196723p5200985.html

How to solve this question

Questions 24 and 25 ‘Suraksha’ is the sole producer and supplier of security systems
in India and the sole employer of locksmiths in the labour market. The demand for
security systems is D( p ) = 100 − p , where p is the price. The production of security
systems only requires locksmiths and the production function is given by f ( L) = 4 L ,
where L is the number of locksmiths employed. The supply curve for locksmiths is
                                                    
given by L( w) = max    0, w/2-20 , where w is the wage rate.
                                                    
24. How many locksmiths will ‘Suraksha’ employ?
       a) 5
      b) 10
     (C) 15
      d) 20

25. If the government sets the minimum wage is 70 , how many locksmiths will
Suraksha employ?
         a)            5
         b)            10
         c)            15
         d)            20