Mathematical Ecnomics 1

Submitted by: MAHNOOR JAVAID

Class: BEC 1

Registration number:FA20_BEC_032

Submitted to: Ma'am Nuzhat Fulki

Question number # 1
Prove distributive property of intersection over union for following
sets .
A={1,2}
B={2,3}
C={2,3,4,5}

Solution: A∩(BUC)=(A∩B)U(A∩C)

{1,2}∩{2,3,4,5}={2}U{2}

{2}={2}

Question number # 2
Given the sets S1=(2,4,6), S2=(7,2,6) ,S4=(2,4). Which of the
following statement are true ?

a: False b: True c: False

d: True e: False f: True

g: True h: False i: False

Question number # 3
Discuss exogenous and endogenous variables with help of an example
.

Endogenous Variable :
A variable is said to be endogenous with in the casual model ,if its value is determined
and influenced by one or more of independent variables .

EXAMPLE : In supply demand model of agriculture market the price and quantity
are endogenous variable as it is dependent on various factor like
consumer taste or change in weather.

Exogenous Variable :
Variable whose solution values are seek from the forces external to the model. Whose
magnitude are accepted as given data such variables are called exogenous variables .

EXAMPLE : On the other side Change in weather or consumer taste is exogenous

variable with might change the demand curve.