ABSTRACT
Figure X illustrates the rather obvious point that the larger is country A the greater will be the length of the straight-line section of the offer curve. In Figure X two situations are depicted, the only difference between them being that the production and consumption conditions
in A in the one case are both 50 per cent larger than in the other case. Thus the production triangles have the same shape but C'C is 50 per cent of CO and D 'D is 50 per cent of D O . E is the point of equilibrium with the smaller production triangle DCO. On the production line D ' C in the larger position we have chosen a consumption point E' which lies on the straight line passing through O and E. This means that we have assumed that the proportion of total expenditure devoted to each commodity is the same in each situation*, so that consumption also is merely larger all round but otherwise unchanged. By similar triangles, one can see that C O D 'O. E 'O F 'O . £ J Q ( = ^ Q ) = ^ Q = YQ • I n o t h e r words, if A is a 50 per cent bigger economy F O will be 50 per cent longer.
