# ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10. Classic List Threaded 7 messages Open this post in threaded view
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## ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10.

 I tried solving them but I couldn't wrap my head around them. I'll post the questions here: 10. Consider an otherwise identical Solow model of economic growth where the entire income is consumed. (a) Analyse how wage and rental rate on capital would change over time. (b) Can the economy attain steady state equilibrium? 2.2. Consider a city that has a number of fast food stalls selling Masala Dosa (MD). All vendors have a marginal cost of Rs. 15/- per MD, and can sell at most 100 MD a day. (a) If the price of an MD is Rs. 20/-, how much does each vendor want to sell? (b) If demand for MD be d(p) = 4400 − 120p, where p denotes price per MD, and each vendor sells exactly 100 units of MD, then how many vendors selling MD are there in the market? (c) Suppose that the city authorities decide to restrict the number of vendors to 20. What would be the market price of MD in that case? (d) If the city authorities decide to issue permits to the vendors keeping the number unchanged at 20, what is the maximum that a vendor will be willing to pay for obtaining such a permit? 4. A monopolist has contracted with the government to sell as much of its output as it likes to the government at Rs. 100/- per unit. Its sales to the government are positive, and it also sells its output to buyers at Rs. 150/- per unit. What is the price elasticity of demand for the monopolists services in the private market? 6. Suppose that due to technological progress labour requirement per unit of output is halved in a Simple Keynesian model where output is proportional to the level of employment. What happens to the equilibrium level of output and the equilibrium level of employment in this case? Consider a modiﬁed Keynesian model where consumption expenditure is proportional to labour income and wage-rate is given. Does technological progress produce a diﬀerent eﬀect on the equilibrium level ofoutput in this case? Any sort of help would be greatly appreciated.
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## Re: ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10.

 In the ques 4 , just p=MC/1-1/ed), here mc = 1oo,P=150, ANS -3
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## Re: ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10.

 In reply to this post by Ayushya Kaul I think this is the solution for 2.2 (a) 100 MD each (b) 26 vendors (c) Rs 20 per MD (d) Rs 5 per permit (max. a seller is willing to pay)
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## Re: ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10.

 In reply to this post by Ayushya Kaul Q. 4 i think... using the formula that "VR" has provided ans= 2
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## Re: ISI Sample Paper 2013 (PEB Economics)- Question 2,4,6 and 10.

 In reply to this post by laracroft Hey Kawai, Q.2 part d I think answer to last part will be Rs. 500. He can sell at max 100 MD with profit margin of 5 on each so rent will be Rs. 500