# List of Topics and Examples
📗 Socrative Game:
(1) General Equilibrium price adjustment, comments:
Video: Review
📗 Definitions and Theorems:
(1) Fundamental Theorem of Welfare Economics (1 and 2):
Video
📗 Algorithms:
(1) Finding competitive equilibrium with production
📗 Examples:
(1) Cobb-Douglas with Production example
📗 Problems:
File:
Questions ;
Answers.
(1) True one by one by one economy
(2) Cobb Douglas one by two by one economy (Sorry, this question is not solvable, production functions need to be concave: f_x(l) = sqrt(l) and f_y(l) = l should work. Also need to add endowment of l = 12)
(3) Complement one by two by one economy
(4) Simple two by two by two economy
Workbook (recommended): 33.2, 33.3, 34.2, 34.3, 34.4, 34.5
Workbook (doable): 33.1, 33.4, 34.6, 34.9, 34.8
# Related Questions
(41) How to solve for CE for Pure Exchange Economy where both consumers have substitute preferences? A: See videos:
Part I,
Part II.
(28) How to find the production set (PPF) to set MRTS = MRS when solving for Pareto set for an economy with production? A: We never did that in class, and that's not how we solved the competitive equilibrium. Only the diagram looks like that, when we actually solve, we never set MRS = MRTS, we used two market clearing conditions.
(23) In which step should we solve which variables when solving for the competitive equilibrium with production? A: The main idea to solve CE with production is solve for the 3 prices using the two market clearing conditions. The goal is to express everything in terms of the prices p, w, r, and solve for these with the four equations. You can have any kind of intermediate steps in the demand / supply computations.
(12) Do I need to know how to solve an exchange economy with production for the exam? A: Yes.