Friday, January 29, 2010

ECO402 (MICROECONOMICS) Assignment 2 Solution - VUsolutions

Solution:

At eq. demand =supply

i.e.1600-125p = 440+165p
this gives p = 4 in 2007
b) Quantity demanded equation will change due to decrease in demand of exports but not due to policy of govt.
eq. of quantity supplied will not be affected.
At p=5.5 q supplied=1347.5
we can’t find q demanded because we don't know that what is the shift in demand the question is not clear. I have solved this question assuming that given demand function is inclusive of exports.
Ans 2. e= p / (marginal cost - p) = 70 /50-70 =-7/2

by VUsolutions VU solutions

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