Offer curve

Offer curve

In economics and particularly in international trade, an offer curve shows the quantity of one type of product that an agent will export ("offer") for each quantity of another type of product that it imports. The offer curve was first derived by English economists Edgeworth and Marshall to help explain international trade.

Offer Curve Described

The Offer Curve is derived from the country's PPF. We describe a Country named K which enjoys both goods Y and X. It is slightly better at producing good X, but wants to consume both goods. It wants to consume at point C or higher (above the PPF). Country K starts in Autarky at point C. At point C, country K can produce (and consume) 3 Y for 5 X. As trade begins with another country, and country K begins to specialize in producing good X. When it produces at point B, it can trade with the other country and consume at point S. We now look at our Offer curve and draw a ray at the level 5 Y for 7 X. When full specialization occurs, K then produces at point A, trades and then consumes at point T. The price has reduced to 1 Y for 1 X, and the economy is now at equilibrium

An extremely useful link for understanding offer curves can be found at: http://www-personal.umich.edu/~alandear/glossary/figs/OfferCurve/oc.html#

A PPF of Country K
An offer curve derived from the PPF to the left

References

For a mathematical derivation and a beautiful illustrations through diagrams of the offer curve(only)

http://econ2.econ.iastate.edu/classes/econ355/choi/ric3.htm


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Offer Curve — ⇡ Tauschkurve …   Lexikon der Economics

  • Wage curve — The wage curve is the term used to describe the negative relationship between the levels of unemployment and wages that arises when these variables are expressed in local terms. According to David Blanchflower and Andrew Oswald (1994, p. 5), the… …   Wikipedia

  • Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… …   Wikipedia

  • Semiconductor curve tracer — The Type 575 Transistor Curve Tracer displays the dynamic characteristic curves of both NPN and PNP transistors on the screen of a 5 inch cathode ray tube. Several different transistor characteristic curves may be displayed, including the… …   Wikipedia

  • Melting curve analysis — is an assessment of the dissociation characteristics of double stranded DNA during heating. The information gathered can be used to infer the presence and identity of single nucleotide polymorphisms. Contents 1 Implementation 2 Applications 3 See …   Wikipedia

  • Organic description of a curve — Organic Or*gan ic, a. [L. organicus, Gr. ?: cf. F. organique.] 1. (Biol.) Of or pertaining to an organ or its functions, or to objects composed of organs; consisting of organs, or containing them; as, the organic structure of animals and plants;… …   The Collaborative International Dictionary of English

  • The Learning Curve (film) — Infobox Film name = The Learning Curve image size = caption = Theatrical release poster director = Eric Schwab producer = Oscar Delgado writer = Eric Schwab narrator = starring = Carmine Giovinazzo Norbert Weisser Monet Mazur Tim Ransom Rod… …   Wikipedia

  • supply curve — noun (economics) A graph showing the quantity of a product that producers will offer for sale at different prices • • • Main Entry: ↑supply …   Useful english dictionary

  • Tauschkurve — Offer Curve; geometrische Darstellung der Tauschwünsche (Exporte, Importe) eines Landes bei unterschiedlichen ⇡ Terms of Trade. Diese Tauschwünsche unterliegen der gesamtwirtschaftlichen Budgetbeschränkung (⇡ Bilanzgerade), Importe und Exporte… …   Lexikon der Economics

  • КРИВАЯ ПРЕДЛОЖЕНИЯ — (offer curve) График, показывающий всеобщее желание предложить на рынке различные товары и услуги. Кривая предложения демонстрирует объем торговли, которую может осуществлять страна по различным сопоставимым ценам. Для небольшой страны кривая… …   Экономический словарь

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”