Abstract
Chapter 2 demonstrated how the consumption preferences or planned demand for two broad categories of commodities (Food and Clothing) for the whole of a society can be represented on a community indifference map. In Chapter 3 the total supply of these two commodities for the same society was depicted by means of a production possibility frontier — PPF. Since practically everything in economics is determined by supply and demand forces, it is now possible to use these two concepts to determine how a society reaches an optimum situation.
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© 1989 Ali M. El-Agraa
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El-Agraa, A.M. (1989). General Equilibrium and the Gains from Trading. In: International Trade. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10206-8_4
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DOI: https://doi.org/10.1007/978-1-349-10206-8_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-10208-2
Online ISBN: 978-1-349-10206-8
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