Re: Conceptual Doubts from Q 21-60-DSE 2011

Posted by Erika on May 29, 2013; 10:06am
URL: http://discussion-forum.276.s1.nabble.com/Conceptual-Doubts-from-Q-21-60-DSE-2011-tp7581391p7581449.html

covering Q 41-60 here:

Q41, 42: I solved using Lagrange's equation but I get x1= 3 instead of 2 in Q41 and x2= 1 in              Q42.
        i feel i am missing on the function being defined as u(x1,x2)= min (function). What does MIN in a function like this imply??

Q 43. giffen and inferior is clear, (and i did read the posts on this before and it remains unresolved) but how would B be proven as a complementary good to A . With increase in price of A, she is buying ALL of A and NONE of B. isnt it that B is a supplement....one can replace coffee with tea completely. One cant replace all car with all petrol though (complementary)

Q 46.  why do we choose (c)? just a silly doubt...agent means consumer?? is this under 'exchange' topic?

Q 49. I know that in this que and also in Q 47, we can add the x1 & x2 and y1 & y2 to get sum = 10,10 which is the given endowment...but is this approach right?? Because I are not using the utility eqn anywhere. Maybe my method is flawed.

Q 52, 53, 54...plz give me a hint (or a link of this is discussed earlier..i could not find) on how to solve these..


Thanks a ton.

Regards.