question archive Sheila went to a street market where she bought 20 tulips (x) and 4 roses (y)
Sheila went to a street market where she bought 20 tulips (x) and 4 roses (y)
Subject:EconomicsPrice: Bought3
Sheila went to a street market where she bought 20 tulips (x) and 4 roses (y). Bruce also went to a market where he bought 18 tulips (x) and 9 roses (y).
- If they went to different markets and faced different prices, then can they find a mutually beneficial trade of tulips and roses? If so then who will give up tulips? Briefly explain. (Hint: use the condition that MRS equals price ratio at the best bundle).
