past papers doubt

[asn123]

1)
In the table below showing demand and supply schedules for boat rides , if demand for boat rides increases to 20 rides a day what will the price be?
PRICE: 2 4 6 8 10 12
QD(Rides/day): 100 90 80 70 60 50
QS(Rides/day):40 50 60 70 80 90

Options are:
i) rise to rs 6 a ride
ii)fall to rs 6 a ride
iii)remains unchanged
iv)rise to 10 a ride

2) if the marginal capital output ratio is 4, the ratio of injections to AD is 30% and investment constitutes 60% of all injections, what is the growth rate in the economy, assuming the economy is in equilibrium?
i)15% ii)4.5% iii)7.5% iv)22.5%
Please can someone tell me the ans with the logic!

 

[Whippet1]

Q1

Currently, QD = QS = 70 at a price of 8.

If QD increases by 20, then the new equilibirum will be where QD = QS = 80 at a price of 10. So, (iv) is the answer.

Q2

Growth is the proportionate rate of increase in national income Y, ie:

g = delta Y/Y
= (delta K / Y) / (delta K / delta Y)
= i/k

where i is the proportion of national income Y spent on investment I and k is the capital-output ratio.

So, here:

i = 0.3 * 0.6 = 18%, and k = 4, so:

g = 18% / 4 = 4.5%

 

[asn123]

Why is i 0.3*0.6?