【正文】 . x xA B A B1 1 1 1* *? ? ?? ?x xA B A B2 2 2 2* * .? ? ?? ?and 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Can this PO allocation be achieved? 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer A 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer A x A2*x A1*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer B x A2*x A1*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer B x A2*x A1*x B1*x B2*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB x A2*x A1*x B1*x B2*But x xA B A B1 1 1 1* *? ? ?? ?2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB x A2*x A1*x B1*x B2*and x xA B A B2 2 2 2* *? ? ?? ?2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?So at the given prices p1 and p2 there is an – excess supply of modity 1 – excess demand for modity 2. ?Neither market clears so the prices p1 and p2 do not cause a general equilibrium. 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB So this PO allocation cannot be achieved by petitive trading. 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Which PO allocations can be achieved by petitive trading? 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?Since there is an excess demand for modity 2, p2 will rise. ?Since there is an excess supply of modity 1, p1 will fall. ?The slope of the budget constraints is p1/p2 so the budget constraints will pivot about the endowment point and bee less steep. 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Which PO allocations can be achieved by petitive trading? 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Which PO allocations can be achieved by petitive trading? 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Which PO allocations can be achieved by petitive trading? 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer A 2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer A x A2*x A1*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer B x A2*x A1*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB Budget constraint for consumer B x A2*x A1*x B1*x B2*2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB x A2*x A1*x B1*x B2*So x xA B A B1 1 1 1* *? ? ?? ?2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?2A?1AxA2xA1OA ?2B?1BxB1xB2OB x A2*x A1*x B1*x B2*and x xA B A B2 2 2 2* *? ? ?? ?2021/6/15 中級(jí)微觀經(jīng)濟(jì)學(xué) Trade in Competitive Markets ?At the new prices p1 and p2 both markets clear。 the