33.

- 34.

35.

36.

4 C 21240
Part D (Essay Questions) ~

Answer any two questions.
Each question carries 12 marks.

If D = 150 — 5P and S = 200 — 10P are the demand and supply function of a market equilibrium
price and quantity. Show that the system is stable according to Marshall and unstable according to
Walras.

Maximise (Graphically) Z= 15X, + 16X,.
~ subject to
4X, + 6X_ < 360
3X, +0X, < 180
OX, +5X_ < 200

>, अतर ர

Two industries I and II input-output relations are given below in A with final demand vector B
(in units) :

I 11
1 8
൧ടെ 1 50 75 B=
11 50
II 100 50
3 I 400 9 hich tisfied.
If the gross output increases to , determine the final demand which can be sa’

11 600

A monopolist is facing a linear demand, p = 100 — 4g. His linear cost function is given by
C = 50 + 20g. Calculate the equilibrium price, quantity and the maximum profit.
(2 x 12 = 24 marks)