In these videos, we look at the model, where there is no outside income but the value of endowment defines consumer’s income.
First video, sets the base of the model by distinguishing between gross demand and net demand. Second video, discusses how to draw budget line in this model.
Then in the next video, we demonstrate how consumer’s choice will be affected if endowment changes
Gross demand and Net Demand
How to draw budget line in Buying and Selling Model?
How does change in endowment affects the budget line?
