E1 4.Carl and Linda are the only people living in a village. Theyconsume only two goods, apples (A) and bananas (B). Carl has aninitial endowment of 10 apples and 60 bananas. Leyla has an initialendowment of 50 apples and 20 bananas. Carl's utility function isUc(Ac, Bc) = AcBc, where Ac and Bc represent his consumption ofapples and bananas, respectively. Leyla's utility function is UL(AL,BL) = min{(N+2)AL, BL}, where AL and BL denote her consumption ofapples and bananas, respectively.40a)N+2'Is the allocation where Carl gets (Ac, Bc) = (- ,40) and Leylagets the rest of both goods a Pareto efficient allocation? Explain.Find the equation for the contract curve. Draw both that allocationand the contract curve in an Edgeworth box. Be precise in yourdrawing.b) Find the competitive equilibrium prices (PA, PB). Find theresulting Walrasian Equilibrium Allocation and represent it in theEdgeworth box. Again, be precise in your drawing.c) Can you find a new initial endowment allocation such thatthe resulting competitive equilibrium is the egalitarian allocationof goods, i.e. (AC,AL) = (30,40) = (AL,BL)?

Answered: Image /qna-images/answer/61013b05-e95c-4245-914d-47999d7c9a91.jpg

4. Carl and Linda are the only people living in a village. They consume only two goods, apples (A) and bananas (B). Carl has an initial endowment of 10 apples and 60 bananas. Leyla has an initial endowment of 50 apples and 20 bananas. Carl's utility function is Uc(Ac, Bc) = AcBc, where Ac and Bc represent his consumption of apples and bananas, respectively. Leyla's utility function is UL(AL, BL) = min{(N+2)AL, BL}, where and BL denote her consumption of apples and bananas, respectively. 40 N+2' a) Is the allocation where Carl gets (Ac, Bc) = (- 5,40) and Leyla gets the rest of both goods a Pareto efficient allocation? Explain. Find the equation for the contract curve. Draw both that allocation and the contract curve in an Edgeworth box. Be precise in your drawing. b) Find the competitive equilibrium prices (PA, PB). Find the resulting Walrasian Equilibrium Allocation and represent it in the Edgeworth box. Again, be precise in your drawing. c) Can you find a new initial endowment allocation such that the resulting competitive equilibrium is the egalitarian allocation of goods, i.e. (AC,AL) = (30,40) = (AL,BL)?

4. Carl and Linda are the only people living in a village. They consume only two goods, apples (A) and bananas (B). Carl has an initial endowment of 10 apples and 60 bananas. Leyla has an initial endowment of 50 apples and 20 bananas. Carl's utility function is Uc(Ac, Bc) = AcBc, where Ac and Bc represent his consumption of apples and bananas, respectively. Leyla's utility function is UL(AL, BL) = min{(N+2)AL, BL}, where and BL denote her consumption of apples and bananas, respectively. 40 N+2' a) Is the allocation where Carl gets (Ac, Bc) = (- 5,40) and Leyla gets the rest of both goods a Pareto efficient allocation? Explain. Find the equation for the contract curve. Draw both that allocation and the contract curve in an Edgeworth box. Be precise in your drawing. b) Find the competitive equilibrium prices (PA, PB). Find the resulting Walrasian Equilibrium Allocation and represent it in the Edgeworth box. Again, be precise in your drawing. c) Can you find a new initial endowment allocation such that the resulting competitive equilibrium is the egalitarian allocation of goods, i.e. (AC,AL) = (30,40) = (AL,BL)?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

dy Consider the linear differential equation dx appropriate integrating factor for this differential equation? Select one alternative: = 208y + x2022. Which of the following is an
5 score
Pls heLP ASAP
2 CSC X
Q14 e1
Q12
B A 10 5x+10 D, 14 E
y s 2²
e7.5 please explain
V 1000 10 because 1000. %3D
Help me out!
Evaluate 3e