Q1) Given the following information of 4 market baskets answer the questions below. (10) Market Basket Units of X Units Y A 5 8 B 8 12 C 3 10 D 2 5 E 8 4 1) Which the market basket is clearly preferred? (2) 2) Which is not desirable? (2) 3) Among which the consumer will be indifferent? Show graphically by making an IC curve (6) Q2) Which assumption implies that the indifference curve cannot cross? Discuss the assumption and support your answer with a graph (5) Q3) The prime minister of Pakistan has taken notice on the increasing sugar prices and now he is requiring his team to analyze whether sugar is an elastic or inelastic commodity in case of Pakistan. Considering the following demand and supply equation for sugar in 2019 and 2020. (1 O) QIt = 1600 125? Q, = 44-0 + 165P in 2019 Q, = 2400 50010 Q, = 570 + 195? in 2020 1) Find the marketclearing price and quantity in 2019 and 2020 (5) 2) Find whether sugar is price elastic or not? (5) Q4) Complete the following table and make the total production curve with the help of the given table. (1 2) Quantity of Labor Total Output Marginal Product Average Product 1 50 2 30 3 90 4 24 5 4 6 96 Q5) Suppose in the long run when every input is variable given the following information, answer the questions below. (13) Labor Capital 1 2 3 4 5 1 35 60 70 85 95 2 60 70 85 95 105 3 70 85 95 105 1 15 4 85 95 105 115 125 5 95 105 1 15 125 135 1) Make Isoquants corresponding to the 60, 70, 85, 95, 105 and 115 output levels. (6) 2) Calculate MRTS at every point along the isoquants representing 85 and 115 output level (7)