Tuesday
September 30, 2014

Homework Help: Economics

Posted by D on Friday, October 27, 2006 at 7:51am.

Hi again! This is a question alot of people will be interested in getting some help with!! Thank you!!

Question:

Why does trade of any type take place? Illustrate your answer by reference to each of the following

a)Market exchange in which price is determined by Demand and supply. (refer in your answer to producer and consumer surplus)

b)Exchange between two individuals based on differences in tastes given a fixed endowment of two goods.

c)International trade

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