33.

34.
35.
36.

4 C 33371
Part D (Essay Questions)

Answer any two questions.
Each question carries 12 marks.

Examine the decomposition of price effect into income effect and substitution effect using Hicksian
and Slutsky’s methods.

Explain how consumer equilibrium can be attained by ordinal analysis.
Describe the derivation of long run average cost curve.
Explain the law of variable proportions.
(2 x 12 = 24 marks)