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#Post#: 43--------------------------------------------------
Exam january 2011 Q. 4 c
DIR By: Federico_Trombetta
Date: December 12, 2012, 10:54 am
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Hi Julia!
I'm sorry because I ask always the same question but... what
comments are we expected to do in question 4 (c) of January 2011
exam?
Thank you very much! And merry Christmas to you and to
everyone!!!
Federico
#Post#: 46--------------------------------------------------
Re: Exam january 2011 Q. 4 c
DIR By: Julia.Wirtz
Date: December 14, 2012, 6:49 am
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This requires nothing more than what you see in the model
solutions.
You just have to compare to equilibrium allocation to the
initial endowments. Trade takes place if they are different.
Here it is enough to check when x1A = e1A, because then all
allocations will be equal to the endowments.
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