Re: DSE 2015 answer

Posted by maecon on May 22, 2016; 11:02am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2015-answer-tp7600806p7600985.html

mike for 27 i might require some hints :(

also buddy i am not sure for 22 :
let me attempt to answer it ,
step 1

for 1: y/Px = x/Py    2: 3y/Px=x/Py  3: y/Px=2x/Px   ( MU/Px = MU/Py )

step 2
now budget constrained equation for each

step 3 solving for x and y for all three cases

i am getting

12 (initial endowment of X ) = 1+ 9/P + 4
14(initial endowment of Y  = P + 3 +  8P

please if u can solve again by this way and tell me