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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

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