Re: some one please help me in solving

Posted by Dr. Strange on Apr 29, 2016; 6:41pm
URL: http://discussion-forum.276.s1.nabble.com/some-one-please-help-me-in-solving-tp7600146p7600228.html

Q1.Budget equation is 8x+py*y=656
We have to maximise U=A* x^.5 *y^0.5
put x in above equation and optimise
We get y= 328/py...required demand

Q2.R=100Q-2Q^2
MR=100-4Q
Given MR=20 So Q=20
R=PQ
So P= 100-2Q (Demand function)
Point elasticity = dQ/dP/Q/P

Put Q=20 in above eqn and find elasticity= 1.5