Chapter 16: First and Second Welfare Theorems in General Equilibrium

Animated Graphics

Each graphic opens in a new browser window.

Deriving a Graphical Depiction of a 2-Person, 2-Good Exchange Economy     Voice-Over

Exhausting Gains from Trade in the Edgeworth Box     Voice-Over

The Contract Curve: Pareto Efficient Allocations in the Edgeworth Box     Voice-Over

The Core: Predicting the Outcome from Negotiated Trades in the Edgeworth Box     Voice-Over

A Disequilibrium Price: Supply is not equal to Demand     Voice-Over

Competitive Equilibrium Prices: Supply equals Demand     Voice-Over

The Second Welfare Theorem     Voice-Over

Robinson Crusoe Choosing His Optimal Bundle     Voice-Over

Robinson Crusoe as Price-Taking Producer and Consumer     Voice-Over

Disequilibrium and Equilibrium in the Robinson Crusoe Economy     Voice-Over

Appendix

End Points of Core no Longer in the Core as the Economy Expands     Voice-Over

A Shrinking Core as the Economy Expands     Voice-Over