7) 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 Norman Gina Initial Allocation 6F, 2C 1F, 8C Individual Trade b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Initial Allocation Final Allocation Trade Final Allocation

7) 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 Norman Gina Initial Allocation 6F, 2C 1F, 8C Individual Trade b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Initial Allocation Final Allocation Trade Final Allocation

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

7) 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
Norman
Gina
Initial Allocation
6F, 2C
1F, 8C
Individual
Michael
Kelly
Trade
b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing
is 3.
Initial Allocation
10F, 3C
5F, 15C
Final Allocation
Trade
Final Allocation

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