# in solving the questions in the attachments below. Write brief notes on the following: (a) Scarcity and choice. (b) Diminishing marginal utility. (c) Price clasticity of demand. (d) Income elasticity

in solving the questions in the attachments below. Write brief notes on the following:

(a) Scarcity and choice.

(b) Diminishing marginal utility.

(c) Price clasticity of demand.

(d) Income elasticity of demand.

(c) Substitution and income effects of a price change. Show that the variance of a discrete random variable X is given by:

var(X ) = G*(1)+G'()-[G'()]

where G(r) denotes the probability generating function of X . If the random variable X has a Poisson distribution with mean 1, derive an expression

for the expected value of 1/(X + 1).

[3] A discrete random variable X has probability function given by:

0

2

P(X = x)

0.3

0.5

0.2

Calculate:

(i)

E(X )

(ii)

var( X )

(iii) the coefficient of skewness.

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