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Is it possible to find equilibrium prices in a linear exchange model for six countries whose directed graph looks like the one below, and why?
Is it possible to find equilibrium prices in a linear exchange model for six countries whose directed graph looks like the one below, and why? The arrows have the usual meaning, for example, the arrow from A to B means that country A is selling its product to country B. A D a. Yes, because it is possible to go from any country to any other country following the arrows. b. Yes, as long as the countries' governments are conservative. c. No, because it is not possible to go from C to F following the arrows. d. No, because equilibrium prices never exist. 00000 e. Yes, as long as inflation is low
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