Varian workbook q.2.11

MA Economics Entrance Coaching Forums Subject forums Micro Varian workbook q.2.11

This topic contains 6 replies, has 3 voices, and was last updated by  admin 5 years, 4 months ago.

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  • #486

    Shiv Hastawala
    Participant

    There seem to be too many variables. Which ones are to be considered for the budget line?

    Prices are given for publications but what is supposed to be computed is the number of people. Please help.


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  • #487

    admin
    Keymaster

    Just to verify, is this the “Harry Hype with dried Sushi” question?


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  • #488

    Shiv Hastawala
    Participant

    Yes


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  • #489

    rohit pandey
    Participant

    dont confuse yourself with variables at first just follow the question and calculate coordinates for 5000$ on boring business magazine and trendy consumer magazine.

    the question is about plotting points on graph and the calculate slope using y-y1=m(x-x1)
    where m is slope m=y2-y1/x2-x1.
    lawyer mba
    5000$ on business mag(3000 , 10000)(x1,y1)
    5000$ on consumer mag(5000 , 6000 )(x2,y2)

    so y-10000/x-3000=-4000/2000

    so the budget line is y+2x=16000
    where y=M and x=L


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  • #490

    admin
    Keymaster

    Good job Rohit.
    One quick correction, the way you’ve written it, y=1000M and x=1000L
    Also, what about the question in part d: will this budget line touch the axes?


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    • This reply was modified 5 years, 4 months ago by  admin.
    • This reply was modified 5 years, 4 months ago by  admin.
  • #496

    rohit pandey
    Participant

    no the budget line will not touch the axes.


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  • #516

    admin
    Keymaster

    Good


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