Re: DSE 2009

Posted by anon_econ on Feb 23, 2012; 12:46pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp7296495p7311715.html

and for the micro question i'm not sure but i think he will not necessarily be better off in the 3rd case. See in the 2nd scheme he can consume y* and M/px where y* is the quantity given to him by the ration shop. now obviously if y* is gr8er than what he was consuming in the 1st scenario, he would b better off. but if y* is less than that quantity u can see graphically that (M/px,y*) would not be on a higher IC in the case of perfect complements..