An Edgeworth box is shown for individuals M and N. In total, there are 100 units of good 'X' and 80 units of good 'Y' available. The endowment point 'A' represents the initial allocation of these two goods to individuals M and N. A price line is shown passing through points 'A', 'B', and 'C' that represents a given relative price. What is this current numeric price ratio shown by the line ABC? answer as a positive fraction: "a/b). At this price ratio, there is an (Enter your for good X. Given that this outcome is not a competitive equilibrium, we would expect that the price of good X will and/or the price of good Y will Graphically, the price line will

An Edgeworth box is shown for individuals M and N. In total, there are 100 units of good 'X' and 80 units of good 'Y' available. The endowment point 'A' represents the initial allocation of these two goods to individuals M and N. A price line is shown passing through points 'A', 'B', and 'C' that represents a given relative price. What is this current numeric price ratio shown by the line ABC? answer as a positive fraction: "a/b). At this price ratio, there is an (Enter your for good X. Given that this outcome is not a competitive equilibrium, we would expect that the price of good X will and/or the price of good Y will Graphically, the price line will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose there are 2 individuals, A and B; 2 goods, X and Y. The utility function of A: U, = X, + YA and the utility function of B: Uz = X3 + Y3. YB- Draw the pareto set in an Edgeworth Box.
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