ch international equilibrium.pptVIP

Ch 3 International Equilibrium 1.Indifference curves(无差异曲线) 2.Basis for trade, gains from trade 3.Equilibrium terms-of-trade limits 4.Theory of Reciprocal Demand (Mill) 5.Terms-of-Trade Estimates 6.Immiserizing growth（贫困化增长） 1.Indifference curves(无差异曲线) Final pattern of trade depends not just on supply, but also on demand - which is determined by income individual tastes Tastes can be shown graphically with indifference curves, which show the various combinations of two goods that give a consumer the same total level of satisfaction A consumer’s indifference map 1.Indifference curves(cont’d