Consider the following exchange economy: u (x1, x2) min {2x1, x2} =(2,2) B = (2, 2) u³ (x, x2) = min{x, 2x} Let P₁/P2 denote the relative price. Suppose = 1. = (a) Show that both markets clear at this relative price by computing the optimal consumption plan for each consumer and showing that these plans are feasible. (b) What is the associated WEA? How many units are bought and sold on each market? (c) Illustrate this equilibrium in an Edgeworth Box diagram. Your diagram should include the WEA, the budget line, and each con- sumer's indifference curve through the WEA.

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Set up a utlitiy maximization problem given the following information.

please  only do: if you can teach explain steps of how to solve each part of formula ? x(p,w)={(2w/3p1,w/3p1) if p1<p2(2w/3p1,w/3p2) if p1≥p2 ? how to solve  for this

Columns 1 through 4 of the accompanying table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D.  Column 5 shows the marginal utility Ricardo gets from saving.  Assume that the prices of A, B, C, and D are $18, $6, $4, and $24, respectively, and that Ricardo has an income of $105.   What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?           How many dollars will Ricardo choose to save?           Check your answers by substituting them into the algebraic statement of the utility‑maximizing rule. In other words, show it works when using this rule.

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Answer the following questions using the following information. Columns 1 and 2 in the table below show the marginal utility that Cody gets by purchasing products A and B. Column 3 shows the marginal utility Cody gets from saving Assume that the price of A is $13 the price of B is $10, and Cody has an income of $129. a) Find the following series of MU/$ for each column. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places Column 1 Column 2 Column 3 Units of A MU MU/S Units of B MU MU/$ Number of $ saved MU MU/S 68 6.8 1 80 6.15 1. 13 0. 2 71 5.46 2 63 6.3 2 10 0. 3 66 5.08 3 56 5.6 3 7 4 61 4.69 4. 46 46 0. 54 4.15 40 4 45 3.46 31 3.1 6. 1 39 3 22 2.2 0. 29 2.23 8 17 1.7 8 b) What quantities of A and B will Cody purchase in maximizing his utility? Quantity of A: 0 Quantity of B: 0 c) How many dollars will Cody save? Dollars Saved = $0 SAVE AND CLOSE

Note: Dashed drop lines will automatically extend to both axes. OFFEE (Millions of pounds) 32 28 COFFEE (Millions of pounds). 24 20 16 0 32 28 24 20 16 0 PPF 4 12 PPF 0 The following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A. As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Sylvania's consumption after trade. (?) 4 O True 8 O False Candonia 4 12 20 16 GRAIN (Millions of pounds) 24 Sylvania 12 20 16 GRAIN (Millions of pounds) 28 24 32 28 Consumption After Trade 32 (? + Consumption After Trade True or False: Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)

Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries). There are two types of agents, h and g, and they have the same preferences over consumption, represented by the utility function: u(x1, x2) = In ¤1 + In x2. However, there are twice as many type-h agents as type-g agents. The only factors of production are their labour. When a type-h agent chooses to spend a fraction a of his day producing meat and the rest producing berries then his output is (yf, y½) = (2a, 2(1 – a)). A type-g agent is more productive. When she chooses to spend a fraction B of her day producing meat and the rest producing berries then her output is (y7, vž) = (38, 12(1 – B)). The hunter-gatherers now have the possibility of opening up their economy to free trade. In world markets, 1 unit of meat can be exchanged for 2 units of berries, and the country would be a price-taker. Which of the following statements is correct? O a. Only agents of type g benefit from free trade. O…

The expression, M = PXX+ PYY is called a budget constraint where M = amount of money available for expenditure; PX= price of commodity X; PY= price of commodity Y; PXX= expenditure on commodity X; PYY= expenditure on commodity Y. Use M = PXX+PYY to express Y as a function of X and note that the graph of this function is called a budget line. Algebraically derive: (1) the y-intercept; (2) the x-intercept. State what determines the slope of the budget line. Graph the function for M = 120; PX= 3; PY= 5 andshow what happens to the original budget line if M decreases by 25% with PX, PY constant.