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Title: Consider a society consisting of just a farmer and a tailor. The farmer has 30 units of food but no ... Post by: djsmyers on Nov 12, 2017 Consider a society consisting of just a farmer and a tailor. The farmer has 30 units of food but no clothing. The tailor has 60 units of clothing but no food. Suppose each has the utility function U = F1/3C2/3. If the price of clothing is always $1, and the food price is currently $1, then we can conclude
A) the market is at a competitive equilibrium. B) the price of food will drop towards a competitive equilibrium. C) the price of food will increase towards a competitive equilibrium. D) None of the above. Title: Re: Consider a society consisting of just a farmer and a tailor. The farmer has 30 units of food but ... Post by: unExpected on Nov 12, 2017 Content hidden
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