SE

o m

U
. c

50 HO
r t i n g
80 N
26 IO
a a d
y m Re
91 UT

e s
u d l n
i k
98 L

n oo
t
SO

O
s r - b
.e fo E
U

b n d
we
O

u a
H
N

w Th
IG

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 m

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c o

U
t .

50 HO
g
a r d i n
80 N m e a
26 IO
R
y e
91 UT

u d l in ks
n oo
t
98 L

O
SO

s r - b
.e b
fo E
d
U

n
we u a
O

H
w Th
N
IG

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 SE
o m

U
. c

50 HO
r t i n g
80 N
26 IO
a a d
y m Re
91 UT

e s
u d l n
i k
98 L

n oo
t
SO

O
s r - b
.e fo E
U

b n d
we
O

u a
H
N

w Th
IG

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 ASSIGNMENT SOLUTIONS GUIDE (2017-2018)
B.E.C.E-15
Elementary Mathematical Methods in
Economics
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the

m
Assignments. These Sample Answers/Solutions are prepared by Private Teacher/Tutors/Authors for the help and guidance

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of the student to get an idea of how he/she can answer the Questions given the Assignments. We do not claim 100%

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accuracy of these sample answers as these are based on the knowledge and capability of Private Teacher/Tutor. Sample
answers may be seen as the Guide/Help for the reference to prepare the answers of the Questions given in the assignment.

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As these solutions and answers are prepared by the private teacher/tutor so the chances of error or mistake cannot be

.
denied. Any Omission or Error is highly regretted though every care has been taken while preparing these Sample Answers/

t
50 HO
Solutions. Please consult your own Teacher/Tutor before you prepare a Particular Answer and for up-to-date and exact
g
A. Long Answer Questions.
d a r
information, data and solution. Student should must read and refer the official study material provided by the university.

i
Q. 1. A monompolist faces the demand curve Q = 60 – P/2. The cost function is C = Q 2. Find the output
n
80 N a
that maximises this monopolist’s profits. What are the prices at profits and that output? Find the elasticity of
e m
26 IO
demand at the profit maximising output.
R
Ans. Q = 60 –
e
P
y
91 UT

d
2

in ks
TR = 120 Q – 2 Q2
l
t u
MR = 120 – 4 Q
n oo
98 L

MC = 2 Q
O
SO

At profit maximization

s
MR
r=
- b
MC

.e fo E
120 – 4Q = 2Q
6Q = 120
b d
U

Q
n= 20

we u a
O

P
H = 60 – Q

w Th
2
N

P
IG

w
= 60 – 2Q
2

P
= 40
2
P = 80
Profit = TR – TC
= 120Q – 2Q2 – Q2
= 120 × 20 – 3 × (20)2
= 2400 – 1200
= 1200

WWW.IGNOUASSIGNMENTS.IN 4
 Q. 4. Discuss the importance of the Hawkins-Simon conditions in input-output analysis.
Ans. Hawkins-Simon Condition
For positive output, according to Hawkins-Simon condition, all principal minors of technology m]
(I – A) should be positive. The condition for positive output requires that 1 – a11 > 0.
and
1 − a11 − a12 
 −a  > 0.
 21 1 − a22 
Thus, both a11 and a22 should be less than 1.
Example: In an economy consisting of an agricultural sector and an industrial sector, the input coefficient
matrix is:
 0.20 0.20 

SE
A=  
 0.70 0.20 

o m
Calculate the total output of the two sectors if the final consumption demand for the products is Rs. 400 crore

U
and Rs. 4,650 respectively. What will be their input requirements?
1 − 0.20 − 0.20   0.80 − 0.20 

. c

50 HO
(I – A) =  − 0.70 1 − 0.20  =  − 0.70 0.80 
  
Determinants of the technology matrix
 0.80 − 0.20 
r t i n g
| I − A |= 
 − 0.70 0.80 

80 N
= 0.64 − 0.14 = 0.50
26 IO
a a d
Here, the Hawkins-Simon is satisfied since the system has appositive solution. The final consumption demand
vector

y mRe
91 UT

 400 
d=  
e s
 4650 

dl n
i k
If the total output of the two sectors are X1 and X2 respectively, the output vector

u
98 L

n oo
 X1 

t
SO

X=  
X2 
O
Since
s r - b
.e fo E
X = (I – A)–1d
U

or
 X1   0.80 − 0.20   400  b
−1

n d
we
O

X  = 
 2
  
 − 0.70 0.80   4650 u a
H
N

w Th
As
IG

 0.80 − 0.20 

w
−1 Adj  
 0.80 − 0.20   − 0.70 0.80 
 − 0.70 0.80  =
 0.80 − 0.20 
 
 − 0.70 0.80 
 

1  0.80 0.20 
0.50  0.70 0.80 
=

Thus
 X1  1  0.80 0.20   400 
 X  = 0.50  0.70 0.80  ⋅  4650 
 2    

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 1 1250   2500 
=
0.50  4000  8000 
=

Hence, the total output of the agricultural sector and that of the industrial sector are Rs. 2500 crore and Rs. 8000
crore.
If X11 is the input of the agricultural sector from the agricultural sector, X 21 is the input of the agricultural sector
from the industrial sector, X12 is the input of the industrial sector from the agricultural sector and X 22 is the input of
the industrial sector from the industrial sector,
From the definition of input coefficients (which are given) we have:
X11 = a11X1 = 0.20.2500 = 500
X21 = a21X1 = 0.70.2500 = 1750

m
X22 = a22X2 = 0.20.8000 = 1600

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X12 = a12X2 = 0.20.8000 = 1600

o
Thus, the input of the agricultural sector from the agricultural sector is Rs. 500 crore, the input of the agricultural
sector from the industrial sector is Rs. 1750 crore, the input of the industrial sector from the agricultural sector is

U
.
Rs. 1600 crore and the input of the industrial sector from the industrial sector is Rs. 1600 crore.

t
Suppose L1 and L2 are primary input requirements of the agricultural sector and industrial sectors respectively.

50 HO
As L1 = l1X1
g
L2 = l2X2

of the industrial sector respectively, we will get

d a r i n
Where l1 and l2 are primary input requirements per rupee worth of the output of the agricultural sector and that

80 N a
l1 = 1 – (a11 + a21) = 1 – (0.20 + 0.70) = 0.10
e m
26 IO
and

R
y
l2 = 1 – (a12 + a22) = 1 – (0.20 + 0.20) = 0.60
So
e
91 UT

L1 = l1X1 = 0.10.2500 = 250

L2 = l2X2 = 0.60.8000 = 4800

u d l in ks
Therefore, the primary requirement of the agriculture sector is Rs. 250 crore and that of the industrial sector is
n oo
t
98 L

Rs. 4800 crore.

O
SO

s
B. Medium Answer Questions.
r
Q. 5. Using Carmer’s rule solve the following equations:
- b
.e fo E
(i) x y 2 0
2x y 2 3
b d
U

n
4x 2y 22

we 2
u a
O

Ans.
H
x+y–z = 0

w Th
N

2x – y + z = 3
4x + 2y – 2z = 2
IG

w D =
1
2
4
1

2
1 1
1

2
det D = 2 4 4 4 2 4
dt D = 2 – 2 = 0

0 1 1
Dx = 3 1 1
2 2 2

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 Dx = 2 2 6 2 0 6
Dx = –2 + 4
Dx = 2

1 0 1
Dy = 2 3 1
4 2 2

Dy = 6 0 4 12 2 0
Dy = – 10 + 10

SE
Dy = 0

1 1 0

o m

U
Dz = 2 1 3
4 2 2

. c

50 HO
= 2
= 10 – 10
12 0 0 6

r
4
t i n g
a
=0

80 N d
Using Cramer’s Rule states that:
a
26 IO
e m
Dx 2
x = 0

R
det D 0

y
91 UT

e s
d
Dy 0
0
y =
n
i k
det D
l
0

u
98 L

n oo
t
Dz 0
SO

z = 0
O det D 0

Where Dx
s r
0, the system is inconsistent.
- b
.e fo E
(ii) x 2y 9
U

2x 3y 4
b n d
we
O

u a 1 2
H
N

Ans. det D = =–3–4=–7

w Th
2 3
IG

9 2

w Dx =

Dx =
4

1 9
2 4
3
= 27 8

= 4 – 18 = – 14
35

Using Cramer’s Rule states that:

Dx 35
x = 5
det D 7

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 Dy 14
y = 2
det D 7

Thus x, y = 5, 2 , where D, det Dx det D y 0 the system is inconsistent.

Q. 7. Find the matrix inverse of :
7 –8 5
4 3 2
5 2 4

1
A–1 = (Co-Factor Matrix of A)T

SE
Ans.
det A
The Co-factor matrix for A:

c o

U
3 2
a11 =
2 4
= 12 + 4 = 16

t .

50 HO
g
a12 =
4
5
d
4
2
= 16 + 10 = – 26

a r i n
80 N a
4 3
=
e m
= 8 – 15 = – 7
26 IO
a 13 5 2
R
e 8 5
y
91 UT

a21

l
=

u
n oo
d
in ks
2 4
= 32 10 42

t
98 L

7 5
a22 = = 28 – 25 = 3
O 5 4
SO

s r - b
.e fo E
7 8
a23 = = 14 + 40 = –54
5 2

b d
U

n
we u a 8 5
O

a31 = = 16 – 15 = 1
H 3 2

w Th
N

7 5
IG

a32 = = –14 – 20 = 34

w
4 2

7 8
a33 = = 21 + 32 = 53
4 3

7 8 5
det A = 4 3 2 =
7 3 4 8 2 5 5 4 2
5 2 4

– 5 3 5 8 4 4 7 2 2

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 = 94 80 40 75 128 28
= 204 + 81
= 285

16 26 7 16 42 1
(Co-factor Matrix of A)T = 42 3 54 = 26 3 34
1 34 53 7 54 53

16 42 1
1 26 3 34 .
Inverse of Matrix A 1 =
285

SE
7 54 53
Q. 8. Determine the elgenvalues and eigenvectors of the matrix:
5 4
o m

U
A
1 2

. c

50 HO
Ans. We substitue A into the equation det (A – kI) = 0 and solve for K.

A – KI =
5
1
k
2
4
k
r t i n g
80 N
26 IO = 5
a
K 2 K 4
a d
This leads to the characteristic equation k 2
= K2

R
7k
e 6
7K

y m 6
0 which has roots k = 1 and k = 6. So, find the eigen
91 UT

e s
d
vectors for K = 1, we solve
A 1I V
l n
i k
= 0

u
98 L

n oo
t
SO

4 4 0
O = 0

s
1 1 0
r - b
.e fo E
=0=0
so if k = 0 : < 0 >
U

Short Answer Type Questions:

b n d
we
O

Q. 11. Evaluate the Limits of:

u a
x2 x 2
H
N

x x 2 as
x 2

w Th
IG

x2 x 2

w Lim
Ans. x 2 x x 2

=
2
2
2 2
2 2 2

4 4
=
0
=0

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 Q. 14. Define:
(a) Adjugate of a matrix
Ans. The adjugate matrix can be found by replacing every element by its co-factor.
The co-factor of an element aij is its minor prefixing.
+ Sign, if i + j is even
– Sign, if i + j is odd.
(b) Decomposable matrix
Ans. A matrix A is decomposable if there exists a permultation matrix P such that PT AP is of the Form [BO; CD]
where B and D are square. A matrix that is not decomposable is indecomposable.
A matrix A is partly decomposable if there exists permutation matrixes P and Q such that P TAQ is of the form

m
[BO : CD] where B and D are square. A matrix that is not even partly decomposable is fully indecomposable.

SE
(c) Singular matrix
Ans. Singular matrix is also square matrix whose determinant is equal to zero

c o

U
1 2
For example
1 2
is singular matrix because its:

t .

50 HO
g
determinant = 1
Q. 16. Integrate
2 1 2 =0

d a r i n
80 N
(i) x Sin xdx
a
e m
26 IO
Ans. x Sinx dx

R
= x cos x cos x dx
e y
91 UT

= x cos x sin x c.

u d l in ks
n oo
t
98 L

(ii) a2 x 2 dx

O
SO

Ans. a2 x 2 dx

s r - b
=
x a2 x2

.e
a2
Sin 1
x
c.
b
fo E
d
U

2 2 a

n
we u a n n
O

H
w Th
N
IG

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