Microeconomics

If only two people are trading their endowments and no production is p

If only two people are trading their endowments and no production is possible, then the equilibrium they reach will A) be on their contract curve. B) result in unequal marginal rates of substitution for the two people. C) result in one person being worse off than with his or her endowment. D) All of the […]

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Date: September 9th, 2020

The saying “What’s that got to do with the price of tea?” reflects A)

The saying “What’s that got to do with the price of tea?” reflects A) two markets where general equilibrium analysis would be most useful. B) two markets where general equilibrium analysis likely won’t be very useful. C) two markets where the products are clearly closely related. D) two markets where firms are incredibly greedy.   […]

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Date: September 9th, 2020