hw1f06 - Final Endowment position position A c >...

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Print name_______________________ Sign name ________________________ Econ 520 F 06 Homework 1 9/20, due 9/22 1.1 (10 homework points) In the space provided, show a series of exchanges in which commodity “ b ” could serve as a medium of indirect exchange in an economy with three individuals A, B, and C, endowed with one unit of commodity “a”, “b”, and “c” each, respectively, and in which preferences are given as shown: Person Preferences Initial Intermediate
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Unformatted text preview: Final Endowment position position A c > a > b a B a > b > c b C b > c > a c Which person would use commodity b as money? _____ Return after class 9/20, at your Friday recitation, or to your TAs mailbox outside Arps 410 by 4:00 PM Friday 9/22. Partial credit will be given for late homework. (80% for 1 class late, 50% if in by last class of quarter.) Cooperation on homeworks is permitted and even encouraged. However, you must complete, understand, and sign your own homework....
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