Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
In an exchange economy there are two people (A and B), and two goods ( and ). Their respective utility functions and endowments are: , ; . What is the minimum possible amounts of in the core? Round your answer to 2 decimal points.

Transcribed Image Text:In an exchange economy there are two people (A and B), and two goods (x and Y). Their respective utility functions and endowments are:
UA(xA, YA) = 6X A + YA , UB(XB,YB)
your answer to 2 decimal points.
= XB + 6YB; WA = WB =
(10, 10). What is the minimum possible amounts of XA in the core? Round
Answer:
10
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