These Healthcare Options, have been sent to You About Obama care - details Inside

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These Healthcare Options, have been sent to You About Obama care - details Inside

Edgeworth traces the effects of the disturbance as follows: QYIV The mistake in 305b987c477f781d17bc82b94010de41 this analysis is the identification, from the point of view of gain significance, of 305b987c477f781d17bc82b94010de41 point P' with point 305b987c477f781d17bc82b94010de41 Q for all cases, including cases where there is 305b987c477f781d17bc82b94010de41 no direct utility relationship 305b987c477f781d17bc82b94010de41 305b987c477f781d17bc82b94010de41 between [579] the OE and the AQR OE' curves. In the 305b987c477f781d17bc82b94010de41 case of a transit tax on country E's exports, levied by 305b987c477f781d17bc82b94010de41 a third country, where the horizontal distance between theOE' and the OE KTUFT curves represents the total amountof tax, OE is still the real reciprocal-demand curve for country E, as seen by its inhabitants, while OE' is the same curve BQPVJ after the tax has been subtracted in E-bales, i.e., is E's curve as seen by importers in country 305b987c477f781d17bc82b94010de41 G. Under the new equilibrium, therefore, country E gives up OS' units of E-commodities in exchange for OR units RQVS 305b987c477f781d17bc82b94010de41 of G-commodities, while country G receives only OS units of E-commodities in exchange for OR 305b987c477f781d17bc82b94010de41 units of its own commodities. The point P', therefore, represents the new equilibrium point on country E's unchanged reciprocal-demand curve, and because P' is nearer to O than is P 305b987c477f781d17bc82b94010de41 as we move alongFJCDULV the JIOISKYS curve OE, the new 305b987c477f781d17bc82b94010de41 situation is less advantageous to country E than the old. BQGThe change in the gain from trade for country E corresponds in WLNSOH direction to the change in the commodity terms of trade for country E, since because P' is 305b987c477f781d17bc82b94010de41 nearer to O along the OE JNSBEQT curve than is P, and the OE curve is concave upward with respect to OX, the slope of the OP' vector with respect to OX, which equals the new ratio in which 305b987c477f781d17bc82b94010de41 G-commodities are obtained by country E in exchange for E-commodities, is 305b987c477f781d17bc82b94010de41 smaller than the slope of the OP vector, which equals the old ratio in which G-commodities were obtained by country E in exchange for E-commodities. But let us suppose that the disturbance which 305b987c477f781d17bc82b94010de41 results in the OE curve being transformed to OE' consists of (1) a reduction in the desire of country E for g-commodities, or (2) 305b987c477f781d17bc82b94010de41 an increase in the real hi of producing E-commodities, or (3) an increase in the desire of country E itself for E-commodities, all types of disturbances which Edgeworth believes to be KAYNUMJ covered by the diagram reproduced here as chart XVIII. The OE curve, as the result of any one of these types of disturbances, now has nothing but 305b987c477f781d17bc82b94010de41 historical significance, 305b987c477f781d17bc82b94010de41 is a quondam curve of reciprocal-demand, and 305b987c477f781d17bc82b94010de41 OE' becomes the real reciprocal-demand 305b987c477f781d17bc82b94010de41 curve for country E. The utility significance of two points cannot be compared 305b987c477f781d17bc82b94010de41 unless both points relate to the same set of utility and disutility functions, whereas, under any HUBPQL of the three hiumptions listed above, the change from the oe tothe oe' reciprocal-demand curves is hiociated with a changein these basic utility 305b987c477f781d17bc82b94010de41 functions. It is therefore no longer possible to determine QLP from [580] the position of Q with reference to P whether JROXII or not the new equilibrium situation is more MPRCKUHC advantageous to country QTC E than was the equilibrium situation prior to the disturbance, since 305b987c477f781d17bc82b94010de41 these are points on different reciprocal-demand curves whose utility relationship to each other cannot be known without more information than the diagram affords. Note, however, the different effect on the commodity terms of trade of an RJAFSHCV .