Wednesday
November 26, 2014

Homework Help: Mirco economics

Posted by D on Saturday, November 4, 2006 at 9:36am.

Why does trade of any type take place? Illustrate your answer by reference to each of the following:
1.
Market exchange in which price is determined by Demand and supply. (refer in your answer to producer and consumer surplus)
2.
Exchange between two individuals based on differences in tastes given a fixed endowment of two goods.
3.
International trade


Take a shot, why would trade take place. Hint: under trade, both sides are better off.

what does fixed endowment of two goods mean ? that means i have 5 apples and someone else has 5 oranges. but we both cannot buy any additional apples or oranges? and the last option we have is to trade due to difference in taste??

i am abit confused about part 2.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - Hi again! This is a question alot of people will be interested in ...
Economics - Utilizing market demand and market supply curves for spaghetti, help...
Economics - Utilizing market demand and market supply curves for spaghetti, help...
economics - 1. Suppose that the market of laptops is given by following supply ...
Economics(micro) - hey, could someone please give me some tips for the following...
Microecon help - How would the following affect the equilibrium price and ...
Economics - How does a price ceiling undermine the rationing function of market-...
Managerial Economics - How does a price ceiling undermine the rationing function...
managerial economics - How does a price ceilng undermine the rationing function ...
Social studies - Exchange rates are determined by _____________. a. the presence...

Search
Members