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?

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Definitions:

Sexual Tension

describes the mutual feelings of attraction and desire often experienced between individuals, particularly when they resist physical intimacy.

Manifest Content

The literal content and storyline of a dream as remembered by the dreamer.

Latent Content

In psychoanalytic theory, this term refers to the hidden psychological meaning of dreams, beneath the manifest content or the dream as remembered by the dreamer.

Paradoxical

Something that appears self-contradictory or absurd but in reality expresses a possible truth.