Q#1: (a). Differentiate between the Partial market equilibrium and General market equilibrium. Also construct the Two-commodity market model and find out the set of equilibrium prices mathematically....


Q#1: (a). Differentiate between the Partial market equilibrium and General market equilibrium.<br>Also construct the Two-commodity market model and find out the set of equilibrium prices<br>mathematically.<br>(b). If U = (-5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5),<br>R = (-5, -3, -1, 1, 3, 5), S = (1,2, 3, 4, 5), and T = (-3, -2, -1, 0, 1, 2, 3} then find:<br>(1). (R - s)', (ii). (R UT) - S, (ii) (TU S) = T'ns'<br>%3D<br>(c). Given a three sector income distribution model in which:<br>Y = C + 1, Ya = Y - T, C = Co + bYd, and T = To + tY<br>Where I = lo = 30, Co = 85, b = 0.75, t = 0.2 and T. = 20. Find:<br>%3D<br>%3D<br>(i). Reduced form (ii) the numerical value of Ye (ii) the effect on the multiplier if (t) is<br>incorporated in the model.<br>

Extracted text: Q#1: (a). Differentiate between the Partial market equilibrium and General market equilibrium. Also construct the Two-commodity market model and find out the set of equilibrium prices mathematically. (b). If U = (-5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5), R = (-5, -3, -1, 1, 3, 5), S = (1,2, 3, 4, 5), and T = (-3, -2, -1, 0, 1, 2, 3} then find: (1). (R - s)', (ii). (R UT) - S, (ii) (TU S) = T'ns' %3D (c). Given a three sector income distribution model in which: Y = C + 1, Ya = Y - T, C = Co + bYd, and T = To + tY Where I = lo = 30, Co = 85, b = 0.75, t = 0.2 and T. = 20. Find: %3D %3D (i). Reduced form (ii) the numerical value of Ye (ii) the effect on the multiplier if (t) is incorporated in the model.

Jun 10, 2022
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