I don't understand why the answer is (B), plz show me the process. Suppose wi = w + w = 1 and w2 = w +w = 1. Preferences are represented by u^(x1, x2) = x1x3 and u (x1, x2) = xx2. (For brevity, I left out the superscript A's and B's above.) Write the equation of the contract curve (in terms of A's coordinates). %3D %3D A) x = x 4x B) x = 1+3x C) x = 2x 1+x D) x = 4x

I don't understand why the answer is (B), plz show me the process. Suppose wi = w + w = 1 and w2 = w +w = 1. Preferences are represented by u^(x1, x2) = x1x3 and u (x1, x2) = xx2. (For brevity, I left out the superscript A's and B's above.) Write the equation of the contract curve (in terms of A's coordinates). %3D %3D A) x = x 4x B) x = 1+3x C) x = 2x 1+x D) x = 4x

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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