Re: dse2005

Posted by duck on
URL: http://discussion-forum.276.s1.nabble.com/dse2005-tp5190800p5704907.html

q1> option d as at price ratio =1 , it would be competitive eqm..

q2> option a  as only the 45 degree line will give all pareto efficient points.

q3> option c

q4> option b
( budget constraint for the one who is taxed => 0.5x +0.5y=50
  budget constraint for the other person => 0.5x+0.5y=75
 now work out in the same way)