More questions on the notebook assignments

[lindapelzer]

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