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Consider a Society Consisting of Just a Farmer and a Tailor.The

question 63

Essay

Consider a society consisting of just a farmer and a tailor.The farmer has 10 units of food but no clothing.The tailor has 20 units of clothing but no food.Suppose each has the utility function U = F ∗ C.The price of clothing is always $1.If the price of food is $3,does a competitive equilibrium exist? If not,what will happen to the price of food?


Definitions:

Parent/Child Communication

This refers to the exchange of information, emotions, and ideas between a parent and their child, influencing the child's development and emotional well-being.

Directives

Instructions or orders issued by an authority, guiding the behavior or actions of individuals or organizations.

Compliance

The act of conforming to laws, regulations, or standards, or acquiescing to a request or demand.

Socially Constructed Categories

Groups or classifications created by society that influence identity and social norms, such as race, gender, and class.

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