ECO406 Mathematical Economics Assignment No 01 Solution & Discussion Due Date: 02-12-2015

SEMESTER FALL 2015 MATHEMATICAL ECONOMICS (ECO406) ASSIGNMENT # 01 DUE DATE: 2 ND DECEMBER, 2015 MARKS: 20 Assignment:01 Question No.1 Part A: Consider the given equations and identify whether each of the following represents a function or a relation and why? i. Qd = 10-2P; P (price) is independent variable and Qd (quantity) is dependent variable ii. Y = X2 ; X is independent variable and Y is dependent variable iii. Z2 = Y; Y is independent variable and Z is dependent variable iv. S = -100+0.85Y; Y (Income) is independent variable and S (saving) is dependent variable (Marks: 8) Part B: Suppose C= 200+50Q is the cost function of a firm; Q is the output and C is total cost. This firm has capacity to produce 200 units of output. Find the domain and range of this function. (Marks: 5) Question No.2 Consider the given data on disposable income and consumption and calculate average propensity to consume (APC), average propensity to save (APS) and marginal propensity to consume (MPC) at each level of disposable income and consumption. Disposable Income (Yd) Consumption (C) APC APS MPC 1000 670 ---- 1500 700 2500 850 3200 1150 4800 1500 (Marks: 2.5+2.5+2) IMPORTANT: 24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. IMPORTANT INSTRUCTIONS DEADLINE: Make sure to upload the solution file before the due date on VULMS. Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES: Use the font style “Times New Roman” or “Arial” and font size “12”. It is advised to compose your document in MS-Word format. You may also compose your assignment in Open Office format. Use black and blue font colors only. RULES FOR MARKING Please note that your assignment will not be marked, if: It is submitted after the due date. The file you uploaded does not open or is corrupt. It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc. It is cheated or copied from other students, internet, books, journals etc. Note related to load shedding: Please be proactive Dear students! As you know that Pre Mid-Term semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs. Wishing you best of luck for the whole semester!