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Master Adding Prices to the Edgeworth Box in 5 Minutes
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=43NE8D5NtHc
In this video I talk about the Edgeworth Box with prices. I also talk about how the First Welfare Theorem says a Competitive Equilibrium / Walrasian Equilibrium implies a Pareto Optimal / Barter Equilibrium. • Link to Edgeworth Box Part 1: • The Edgeworth Box Basics Explained in... • Thank you to @NG_GN for the comment behind this video! • Timestamps: • 0:00 - Intro • 0:43 - Edgeworth Box Review • 1:41 - When is a Competitive Equilibrium Pareto Optimal? • 2:06 - Adding a Budget Constraint to Edgeworth Box • 2:31 - The First Fundamental Welfare Theorem Explained • 3:05 - Intuitive Example Graphically • 4:43 - Sketch of Algebraic Steps for Solution
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