3. Suppose we have an economy with three persons and four commodities, including money. The table below shows what each would like to do at the existing prices. Numbers show the value that a person plans to supply or demand, with a + indicating that a person plans to supply the item, and a - indicating that the person plans to demand the item. Fill in the missing numbers. Crusoe Friday Gilligan Money 0 0 0 Fish +1 +1 Yams +3 +2 Shoes +2 +4 Suppose the price of fish is one yam. Once these people begin to trade, the price of fish will: ?? rise. fall. stay the same. 4. Below is a table showing the buying and selling plans in a primitive three-person, three-good economy. A plus sign indicates a desire to sell, and a minus sign indicates a desire to buy. Potatoes serve as money in this economy, so all numbers represent potato values. (For example, the +5 for Matt in the fish column means that Matt wants to sell 5 potatoes worth of fish.) Fill in the missing numbers. Transactors: Market Fish Apples Potatoes Matt +5 -2 Ed +5 -4 Pete -2 +5 Is this system in equilibrium? Explain. ?? Yes No Notice that this table is organized in a different way from the first table. Now it is your turn. Put in a set of numbers so that each of the three persons has consistent plans and so that each market is in equilibrium. Transactors: Market Fish Apples Potatoes Matt Ed Pete You must enter a number in each box. A blank does not count as zero.
3. Suppose we have an economy with three persons and four commodities, including money. The table below shows what each would like to do at the existing prices. Numbers show the value that a person plans to supply or demand, with a + indicating that a person plans to supply the item, and a - indicating that the person plans to demand the item. Fill in the missing numbers.
Money
Fish
Yams
Shoes
Suppose the price of fish is one yam. Once these people begin to trade, the price of fish will: ?? rise. fall. stay the same.
4. Below is a table showing the buying and selling plans in a primitive three-person, three-good economy. A plus sign indicates a desire to sell, and a minus sign indicates a desire to buy. Potatoes serve as money in this economy, so all numbers represent potato values. (For example, the +5 for Matt in the fish column means that Matt wants to sell 5 potatoes worth of fish.) Fill in the missing numbers.
Matt
Ed
Pete
Is this system in equilibrium? Explain. ?? Yes No
Now it is your turn. Put in a set of numbers so that each of the three persons has consistent plans and so that each market is in equilibrium.
Transactors:
