. An economy with two consumers whose preferences are represented by utility functions 1 = min (x1,2y1) and U2 = 2x2 +2y2 nd the aggregate endowment of 4 units of x and 3 units of y ) Find a Pareto efficiency allocation and depict it in the Edge-worth box. )ls there a Pareto efficient allocation in which one consumer has all of the goods? Explain.
. An economy with two consumers whose preferences are represented by utility functions 1 = min (x1,2y1) and U2 = 2x2 +2y2 nd the aggregate endowment of 4 units of x and 3 units of y ) Find a Pareto efficiency allocation and depict it in the Edge-worth box. )ls there a Pareto efficient allocation in which one consumer has all of the goods? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Q. An economy with two consumers whose preferences are represented by utility functions
U1 = min (x1,2y1) and U2 = 2x2 +2y2
And the aggregate endowment of 4 units of x and 3 units of y
(a) Find a Pareto efficiency allocation and depict it in the Edge-worth box.
(b)ls there a Pareto efficient allocation in which one consumer has all of the goods? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4454b7c5-cfde-458f-b3d2-867aac67c9f3%2F09c98786-7b37-418f-8765-2af8377cb0ce%2Fvyfvanf_processed.png&w=3840&q=75)
Transcribed Image Text:Q. An economy with two consumers whose preferences are represented by utility functions
U1 = min (x1,2y1) and U2 = 2x2 +2y2
And the aggregate endowment of 4 units of x and 3 units of y
(a) Find a Pareto efficiency allocation and depict it in the Edge-worth box.
(b)ls there a Pareto efficient allocation in which one consumer has all of the goods? Explain.
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