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Unformatted text preview: S. Nageeb Ali May 27, 2008 Grades uploaded to Webct Will be available after exam Have to submit re-grade requests by Thursday
Will re-grade entire exam Will take average of 1st and 2nd midterms
If you did not take either midterm and you have not submitted any medical / other reasons to me, you will get a 0. Grade Distribution:
Maximum: 98 70th Percentile: 81 50th Percentile: 75 30th Percentile: 67 Minimum: 6 Standard Deviation: 17 Grade Distribution:
Maximum: 97 75th Percentile: 79 50th Percentile: 67 25th Percentile: 52 Minimum: 22 Standard Deviation: 18 General Equilibrium Models
Competitive markets with two interlinked products More generally, equilibrium exists (one of Arrow's insights) Exchange Economies
Fixed endowment, consider deals and trades An allocation is efficient if any other allocation that makes one individual better off makes the other individual strictly worse off Noted that at efficient point in Edgeworth Box, indifferent curves are tangent ! " Consider an economy with two people: Jane and Denise
Jane has 30 cords of firewood and 20 candy bars Denise has 20 cords of firewood and 60 candy bars Together, they have 50 cords of firewood and 80 candy bars Questions:
What are the efficient allocations? Could a market achieve this efficient allocation? "# ! "# !$ $ % & ' () ( ( $ % * % "$ $ %+ ( , - " () ( ( $ % ! ' . " $ $ % Suppose there is 1 unit of x and 1 unit of y Person 1's Utility: u1 = x y1Person 2's Utility: u2 = x y1- - = = = - - - If = , /
= - - + - = - - + - - = + - - - $ $ % #01 ( & * % "$ $ %/ $ $ % # $ ' ...
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- Spring '07