Walras equilibrium with two consumers and two commodities

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Reference no: EM139336

Q1. Illustrate what are the basic steps in solving for Walras Equilibrium with two consumers and two commodities, given endowments and preferences for both consumers?

Q2. Discuss Explain how international factor movements can be seen as a substitute for international trade. Explain how they might be seen as complements? Explain how might trade barriers (or lack of trade barriers) be related to this question?

Q3. The price of good 1 doubles, the price of good2 becomes 8 times larger and income becomes 4 times larger. Discuss the effects of the changes on the budget line and make clear assumptions
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Reference no: EM139336

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