Economics Previous Year Questions

A firm finds that for the product that it produces, its (own) price elasticity of demand is 4. Currently, the firm is selling 2000 units per month at ₹ 5 per unit. If it wishes to increase its sales by 10%, it must

Suppose that a firm has a technology represented by the following production function:
\[ Y(K, L) = K^x L^y \]
where \( K \) denotes capital, \( L \) denotes labour, \( Y \) denotes the maximum output that is possible to produce using capital \( K \) and labour \( L \). \( x \) and \( y \) are two positive real numbers. It is also known that the production function satisfies constant returns to scale. Then which of the following is true?

An individual is endowed with income of Rs. 142 and has the utility function \( U(x_1, x_2) = x_2(x_1 + 1) \), where \( x_1 \geq 0, x_2 \geq 0 \). The unit price of \( x_1 \) is Rs. 2 and the unit price of \( x_2 \) is Rs. 3. The utility maximizing bundle is

A is an \( n \times n \) matrix. Consider the following two statements
Statement 1: Columns of matrix A are linearly independent
Statement 2: Inverse of matrix A exists
Which one of the following statements is TRUE?