I have some more questions on 'The Market' part of the notebook assignments
Model an economy where an increase in income inequality reduces welfare. My thought was that income inequality higher when increasing SD in normal distribution (after incomes=) and then going through the exercise as before. However, it randomizes every time so this does not work. Should we multiply 'incomes' when defining afford ()?
def afford(p,incomes):
return incomes>p
In the Market Power assignment, I thought of including min costs. However, costs are not specified for the monopolist. Via which channel would a min function help in this case?
In creating a Histogram, the vlines displays a short line until 1, probably because that is the quantity of P0. How can I fix this? I used the following code:
plt.hist(df_after_merger.P, label='equilibrium price')
plt.xlabel("$P$")
plt.vlines(P0,0,1)
plt.legend()
plt.show()
Hi,
I have some more questions on 'The Market' part of the notebook assignments
Model an economy where an increase in income inequality reduces welfare. My thought was that income inequality higher when increasing SD in normal distribution (after incomes=) and then going through the exercise as before. However, it randomizes every time so this does not work. Should we multiply 'incomes' when defining afford ()? def afford(p,incomes): return incomes>p
In the Market Power assignment, I thought of including min costs. However, costs are not specified for the monopolist. Via which channel would a min function help in this case?
In creating a Histogram, the vlines displays a short line until 1, probably because that is the quantity of P0. How can I fix this? I used the following code: plt.hist(df_after_merger.P, label='equilibrium price') plt.xlabel("$P$") plt.vlines(P0,0,1) plt.legend() plt.show()
Thanks