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47. Consider an exchange economy with two goods and two agents. Agent 2's utility is as above. The equilibrium allocation is (x1, Y1) = (6,1) and (x2, Y2) equilibrium prices are (1,1). What could be the endowment? (4, 4). The A. Agent l's endowment is (2,5) and agent 2's endowment is (8,0) B. Agent 1's endowment is (7,0) and agent 2's endowment is (3,5) C. Both (a) and (b)

47. Consider an exchange economy with two goods and two agents. Agent 2's utility is as above. The equilibrium allocation is (x1, Y1) = (6,1) and (x2, Y2) equilibrium prices are (1,1). What could be the endowment? (4, 4). The A. Agent l's endowment is (2,5) and agent 2's endowment is (8,0) B. Agent 1's endowment is (7,0) and agent 2's endowment is (3,5) C. Both (a) and (b)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The questions are attached in the image. The questions are based on 'General equilibrium' model in 'economics'. (please do not tag it in some other subject)

These are simple Multiple choice questions which are undergrad level. Please do not reject them. 

The answers to 45,46 and 47 are D,C and C respectively.

Please answer the following as well:

1. For 45, provide the set of pareto efficient outcomes.

2. For 46, provide an algebric solution if possible. Provide a mathematical argument.

3. For 47, provide provide a set of points (if exists) that will take us to the given equilibrium under the given conditions. 

The questions are easy. PLEASE DO NOT REJECT IT!

47. Consider an exchange economy with two goods and two agents. Agent 2's utility is as above. The equilibrium allocation is (x1, Y1) = (6,1) and (x2, Y2) equilibrium prices are (1, 1). What could be the endowment? (4, 4). The A. Agent l's endowment is (2,5) and agent 2's endowment is (8,0) B. Agent l's endowment is (7,0) and agent 2's endowment is (3,5) C. Both (a) and (b) D. Neither (a) nor (b)
Transcribed Image Text:47. Consider an exchange economy with two goods and two agents. Agent 2's utility is as above. The equilibrium allocation is (x1, Y1) = (6,1) and (x2, Y2) equilibrium prices are (1, 1). What could be the endowment? (4, 4). The A. Agent l's endowment is (2,5) and agent 2's endowment is (8,0) B. Agent l's endowment is (7,0) and agent 2's endowment is (3,5) C. Both (a) and (b) D. Neither (a) nor (b)
45. Consider an exchange economy with two agents, 1 and 2, and two goods, X and Y. There are 6 units of X and 4 units of Y available. An allocation is denoted by (x1, Y1), (x2, Y2), where (x1, Y1) is agent 1's consumption bundle, (x2, Y2) is agent 2's consumption bundle, r1 + x2 = 6 and y1 + Y2 = 4. Agent 1 has the utility function u1 = min{x1,Y1} and agent 2 has the utility function u2(x2, Y2) min{r2, y2}. Which of the following = allocations is not Pareto efficient? А. (2,2), (4,2) В. (3,2), (3,2) С. (3,1), (3,3) D. (1,2), (5,2) 46. Consider an exchange economy with two goods and two agents have the same preferences as in the previous question. Agent l's endowment is (0, a) and agent 2's endowment is (B, 0). What is generally true? A. Any allocation in which each agent gets equal amounts of the two goods is an equilibrium allocation B. If B < a, then the price of X is 0 C. If B > a, then the price of X is 0 D. Any allocation in which agent 2 gets none of good Y is an equilibrium allocation
Transcribed Image Text:45. Consider an exchange economy with two agents, 1 and 2, and two goods, X and Y. There are 6 units of X and 4 units of Y available. An allocation is denoted by (x1, Y1), (x2, Y2), where (x1, Y1) is agent 1's consumption bundle, (x2, Y2) is agent 2's consumption bundle, r1 + x2 = 6 and y1 + Y2 = 4. Agent 1 has the utility function u1 = min{x1,Y1} and agent 2 has the utility function u2(x2, Y2) min{r2, y2}. Which of the following = allocations is not Pareto efficient? А. (2,2), (4,2) В. (3,2), (3,2) С. (3,1), (3,3) D. (1,2), (5,2) 46. Consider an exchange economy with two goods and two agents have the same preferences as in the previous question. Agent l's endowment is (0, a) and agent 2's endowment is (B, 0). What is generally true? A. Any allocation in which each agent gets equal amounts of the two goods is an equilibrium allocation B. If B < a, then the price of X is 0 C. If B > a, then the price of X is 0 D. Any allocation in which agent 2 gets none of good Y is an equilibrium allocation
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