Questions 1. Consider a 3-consumer, 3-commodity exchange economy. Index the consumers as a, b, c and commodities as 1,2,3. Use the lettere to indicate endowments, x to indicate commodities, and p to indicate prices. Also use superscript for commodities and subscripts for consumers. For example, the endowment of commodity 1 held by consumer a should be denoted as ea. NOTE: DO NOT USE THE SIGN. USE THE NORMAL "+" SIGN FOR ADDITONS. You have to write out the elements of each vector in your equation using the appropriate notation as described above. For example, if x is a (3 x 1) vector and if its elements are denoted as X1, X2, X3, you should write x₂
Questions 1. Consider a 3-consumer, 3-commodity exchange economy. Index the consumers as a, b, c and commodities as 1,2,3. Use the lettere to indicate endowments, x to indicate commodities, and p to indicate prices. Also use superscript for commodities and subscripts for consumers. For example, the endowment of commodity 1 held by consumer a should be denoted as ea. NOTE: DO NOT USE THE SIGN. USE THE NORMAL "+" SIGN FOR ADDITONS. You have to write out the elements of each vector in your equation using the appropriate notation as described above. For example, if x is a (3 x 1) vector and if its elements are denoted as X1, X2, X3, you should write x₂
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Demonstrate that if the markets for two commodities are in equilibrium, the third
market must also be in equilibrium.
![Questions
1. Consider a 3-consumer, 3-commodity exchange economy. Index the consumers as a, b, c and
commodities as 1,2,3. Use the lettere to indicate endowments, x to indicate commodities, and
p to indicate prices. Also use superscript for commodities and subscripts for consumers. For
example, the endowment of commodity 1 held by consumer a should be denoted as ed.
NOTE: DO NOT USE THE SIGN. USE THE NORMAL "+" SIGN FOR ADDITONS. You have to
write out the elements of each vector in your equation using the appropriate notation as
described above. For example, if x is a (3 x 1) vector and if its elements are denoted as
X1, X2, X3, you should write
x₂](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F873122f1-dead-4804-99db-6d51b7591a67%2F2a9ce3ec-b46f-4fc8-b4b2-7ab6614ea793%2Fpu9hbdn_processed.png&w=3840&q=75)
Transcribed Image Text:Questions
1. Consider a 3-consumer, 3-commodity exchange economy. Index the consumers as a, b, c and
commodities as 1,2,3. Use the lettere to indicate endowments, x to indicate commodities, and
p to indicate prices. Also use superscript for commodities and subscripts for consumers. For
example, the endowment of commodity 1 held by consumer a should be denoted as ed.
NOTE: DO NOT USE THE SIGN. USE THE NORMAL "+" SIGN FOR ADDITONS. You have to
write out the elements of each vector in your equation using the appropriate notation as
described above. For example, if x is a (3 x 1) vector and if its elements are denoted as
X1, X2, X3, you should write
x₂
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education