please only do: if you can teach explain each Consider a pure exchange economy with two goods, 1 and 2, and two consumers, A and B,who have utilitiesanduA (₁, ₂) = min{x₁, x₂}u³(x₁, x2) = x³x₂.Recall that the Marshallian demands corresponding to these utility functions are, respectively,andWx^(p, w) =P₁+P2 P1+P2,2³ (p, w) = (3/p1' 4P²)3wConsumer A has endowment wA = (4,0) and B has endowment wB= (0,2).(a) Find all Walrasian equilibria.(b) Find all Pareto efficient allocations.(c) Does the conclusion of the Second Welfare Theorem hold for this economy? Explain.

To find the Walrasian equilibrium, we have to find the optimal consumption condition for both agents…

Consider a pure exchange economy with two goods, 1 and 2, and two consumers, A and B, who have utilities and u^(x₁, x₂) = min{₁, ₂} u³(x₁, x₂) = x³x₂. Recall that the Marshallian demands corresponding to these utility functions are, respectively, and x^(p, w) = | rB (p, w) = w W P₁+P2¹ P1 + P2, 3w W 4p₁ 4p2 Consumer A has endowment wA = (4,0) and B has endowment B = (0,2). (a) Find all Walrasian equilibria. (b) Find all Pareto efficient allocations. (c) Does the conclusion of the Second Welfare Theorem hold for this economy? Explain.

Consider a pure exchange economy with two goods, 1 and 2, and two consumers, A and B, who have utilities and u^(x₁, x₂) = min{₁, ₂} u³(x₁, x₂) = x³x₂. Recall that the Marshallian demands corresponding to these utility functions are, respectively, and x^(p, w) = | rB (p, w) = w W P₁+P2¹ P1 + P2, 3w W 4p₁ 4p2 Consumer A has endowment wA = (4,0) and B has endowment B = (0,2). (a) Find all Walrasian equilibria. (b) Find all Pareto efficient allocations. (c) Does the conclusion of the Second Welfare Theorem hold for this economy? Explain.

Microeconomics A Contemporary Intro

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ISBN:9781285635101

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Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 6QFR

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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.

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please only do: if you can teach explain each

Consider a pure exchange economy with two goods, 1 and 2, and two consumers, A and B,
who have utilities
and
uA (₁, ₂) = min{x₁, x₂}
u³(x₁, x2) = x³x₂.
Recall that the Marshallian demands corresponding to these utility functions are, respectively,
and
W
x^(p, w) =
P₁+P2 P1+P2,
2³ (p, w) = (3/p1' 4P²)
3w
Consumer A has endowment wA = (4,0) and B has endowment wB= (0,2).
(a) Find all Walrasian equilibria.
(b) Find all Pareto efficient allocations.
(c) Does the conclusion of the Second Welfare Theorem hold for this economy? Explain.

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