Re: ISI PEB (Economics), 2014 ANSWERS 1 TO 5..

Posted by kk on Apr 19, 2015; 3:27am
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEB-Economics-2014-ANSWERS-1-TO-5-tp7595987p7596236.html

@Zen in question 2 deadweight loss is 100.correct
 
and in ques 3(b) even i have solved the question using reservation model.and the equilibrium price is 5 because there are 5 traders who value the chicken more than 5 and there are 5 traders who value them less than 5..so those who have value more than 5 will be ready to buy the chicken and those who have value less than 5 will be willing to sell the chicken.price cannot be 4 as the 4th trader will be indifferent