2) Fill in the missing information in the following tables. For each table, use the information provided to identify a possible trade. Then identify the final allocation and a possible value for the MRS at the efficient solution. (Note: There is more than one correct answer.) Illustrate your results using Edgeworth Box diagrams. Norman's MRS of food for clothing is 1 and Gina's MRS of food for clothing is а. 4: Individual Initial Allocation Trade Final Allocation Norman 6F, 2C Gina 1F, 8C b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Individual Initial Allocation Trade Final Allocation Michael 10F, 3C Kelly 5F, 15C
2) Fill in the missing information in the following tables. For each table, use the information provided to identify a possible trade. Then identify the final allocation and a possible value for the MRS at the efficient solution. (Note: There is more than one correct answer.) Illustrate your results using Edgeworth Box diagrams. Norman's MRS of food for clothing is 1 and Gina's MRS of food for clothing is а. 4: Individual Initial Allocation Trade Final Allocation Norman 6F, 2C Gina 1F, 8C b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Individual Initial Allocation Trade Final Allocation Michael 10F, 3C Kelly 5F, 15C
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A and B

Transcribed Image Text:2) Fill in the missing information in the following tables. For each table, use the
information provided to identify a possible trade. Then identify the final allocation
and a possible value for the MRS at the efficient solution. (Note: There is more than
one correct answer.) Illustrate your results using Edgeworth Box diagrams.
a. Norman's MRS of food for clothing is 1 and Gina's MRS of food for clothing is
4:
Individual
Initial Allocation
Trade
Final Allocation
Norman
6F, 2C
Gina
1F, 8C
b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing
is 3.
Individual
Initial Allocation
Trade
Final Allocation
Michael
10F, 3C
Kelly
5F, 15C
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