Re: DSE Q.NO-34 2010

Posted by Amit Goyal on Jun 22, 2011; 10:02am
URL: http://discussion-forum.276.s1.nabble.com/DSE-Q-NO-34-2010-tp6502921p6503613.html

Well If you are using First Welfare Theorem for solving the problem then you need to check for efficiency of the options. If you cannot rule out certain option by efficiency argument then you need to use the definition of equilibrium to check. If this is what you are doing you are right.