Scribd
Upload
22 views3 pages

Final Exam For December 2023-2

Uploaded by

Ajani McPherson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
22 views3 pages

Final Exam For December 2023-2

Uploaded by

Ajani McPherson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

UNIVERSITY OF TECHNOLOGY, JAMAICA

FACULTY: SCIENCE AND SPORT

SCHOOL: MATHEMATICS AND STATISTICS

Final Examination: Semester 1, Academic Year 2023/24

Module Name: Mathematics for Economists

Module Code: MAT2053

Date: December, 2023

Theory/Practical: Theory

Group: B.Sc. Economics

Duration: 2 hours

Instructions:

1. This paper has three (3) pages and six (6) questions.

2. Answer ANY FOUR (4) questions.

3. Begin the answer to each question on a new page in the answer booklet provided.

4. Candidates are allowed to use silent electronic calculators.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

1
QUESTION 1
(a) The demand and supply functions of a two-commodity market model are as
follows.
Qd 1  306  3P1  P2
Qs1  34  4 P1
Qd 2  204  P1  2 P2
Qs 2  34  3P2
where Qd 1 is the quantity demanded of commodity 1, Qd 2 is the quantity
demanded of commodity 2, Qs1 is the quantity supplied of commodity 1, Qs 2
is the quantity supplied of commodity 2, P1 is the price of commodity 1, and
P2 is the price of commodity 2.

Find the equilibrium prices, P1 and P2 , and the equilibrium quantities, Q1
and Q2 . [13 marks]

(b) Let a national-income model be


Y  C  I 0  G0
C  200  0.80(Y  T )
T  80  0.25Y
I 0  400
G0  600
where Y is national income, C is consumption expenditure, T is taxes, I 0 is
investment expenditure, and G0 is government expenditure.

Find the equilibrium national income, Y  , and the equilibrium consumption


expenditure, C  . [7 marks]

QUESTION 2

(a) Let the demand functions of a two-product monopolist be P1  36  3Q1 and


P2  40  5Q2 , where P1 and P2 are the respective prices and Q1 and Q2 are
the respective quantities of the two products. Let the joint-cost function be
C  Q12  2Q1Q2  3Q22 .

Find the quantities, Q1 and Q2 , that should be produced to maximize profit.
Note: You must check if the second-order sufficient condition is satisfied. [13 marks]

(b) The production function for a firm is Q  f ( K , L)  5KL, where Q is the


number of units of output, K is the number of units of capital used, and L is
the number of units of labour used.
Show that the production function is quasiconcave for K  0 and L  0. [7 marks]

QUESTION 3
Consider a consumer with the utility function U  xy  x  2 y, where x and y are the
respective quantities of the two commodities which she consumes. Let px and p y be
the respective prices of the two commodities and let m be the consumer’s income.

(a) Find the optimal level of purchase x in terms of px , p y , and m. [13 marks]

(b) Verify that the second-order sufficient condition for a maximum is satisfied. [7 marks]

2
QUESTION 4
Use the Kuhn-Tucker conditions to find the optimal solution for the following
nonlinear programming problem.
Maximize z  f ( x1 , x2 )   x12  x22
subject to x1  2 x2  8
x1  x2  1
x1 , x2  0
Hint: In solving the problem, assume x1  0, x2  0, 1  0, and 2  0. [20 marks]

QUESTION 5
(a) Solve the following differential equation.
dy xy  y
 [6 marks]
dx x  xy

(b) Let the demand and supply functions be, respectively,


Qd  42  4 P(t )  4 P(t )  P(t )
Qs  6  8P(t )
with initial conditions P (0)  6 and P(0)  4. Assuming market clearance at
every point of time, find the time path of price, P (t ). [14 marks]

QUESTION 6
(a) Solve the following difference equation and sketch the time path of y from
t  0 to t  5.
yt 1  1.5 yt  3, y0  2 [7 marks]

(b) The Harrod-Domar growth model is given by


St  aYt , 0  a 1
I t  b(Yt  Yt 1 ), b  1
St  I t
where Yt represents national income in period t, St represents savings in
period t, I t represents investment in period t, and a and b are parameters.
Find the time paths for national income, savings, and investment. [10 marks]

(c) The demand and supply functions for the cobweb model are as follows.
Qdt  18  3Pt
Qst  3  4 Pt 1
Find the intertemporal equilibrium price. [3 marks]

**** END OF PAPER ****

You might also like