Re: DSE 2006

Posted by aditi5000 on Jun 07, 2012; 12:55pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2006-tp7577468p7577545.html

Hey did anyone solve question 51 of 2006?
question asks for deadweight welfare loss... is that gross or net... (net is the sum of two small internal triangles next to the govt revenue i think..) but either way, i am not getting any of the options!!... please help.

And also question 52.. it says f is strictly increasing i.e. if x>y then f(x) > f(y) ..so  shouldn't f'(x)  be strictly greater than zero ?? if it is equal to zero then that means the function itself must be a constant function.. (or it could be a critical point...) but a constant function is not strictly increasing or strictly decreasing... so how does this make sense? is this a reference to critical points of inflection where the rate of increase is changing ? from concave to convex or vice versa?
why is it c.. and not d?

Please help.