Re: DSE 2014 doubt

Posted by shar311 on Jun 25, 2015; 4:22am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2014-doubt-tp7597718p7598418.html

Hey guys, Please help me with this one..

Series 01, Q3 (Fixed point question). In the solution given by Amit Sir, function g(x) has been assumed as f(x)-x. Now later to prove that g(x) has a fixed point, it has been stated that g(a)>=0 and g(b)<=0 (x belongs to [a,b]). How do we come to this conclusion?

Series 01 Q6-10, I have a doubt, maybe a very trivial one which isn't clicking but would like members to help me clear it out. "Agent 1 strictly prefers bundle (a,b) to bundle (c,d) if, either a > c, or a = c and b > d." does this mean it is a case of perfect substitutes? Because while solving demand for 'x' by agent 1 is m1/px while that of 'y' is zero.

Any help would be much appreciated.
Thanks.