Unformatted text preview: x Add a red line whose slope represents the relative price: bushel log 1 If Colleen specializes in cutting logs: x she can trade some of her logs for bushels of food and x consume a combination that exceeds any combination that she could produce on her own. If Bill specializes in gathering food: x he can trade some of his bushels of food for logs and x consume a combination that exceeds any combination that he could produce on his own. Page 28...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10