Define the concept of economic interpretation

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Reference no: EM131483938

Question: Consider the general equilibrium scenario in an economy that produces final and intermediate commodities. The final commodities' demands and the input supplies are expressed by the familiar p = c - Dx, where D is a symmetric positive semidefinite matrix and s = b + E y, where E is a symmetric positive definite matrix. The technologies for producing final commodities are A_k , k = 1, ... , K, whereas the technologies for producing intermediate commodities are B_k , k = 1, ... , K.

(a) Formulate a meaningful primal specification and give an appropriate economic interpretation.

(b) Derive the dual specification and give a complete economic interpretation.

Reference no: EM131483938

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