UA(XA. YA) = 4XA + 3YA UB (XB. Ya) 5(X)^ (Y₂)² Q1 a) Suppose that initially consumer A has 5 units of X and 15 units of Y, and that consumer B has 15 units of X and 5 units of Y. Is this allocation Pareto efficient? Let Px and Py be the prices of goods X and Y, respectively. Write down expressions for the two individuals' budget constraints.
UA(XA. YA) = 4XA + 3YA UB (XB. Ya) 5(X)^ (Y₂)² Q1 a) Suppose that initially consumer A has 5 units of X and 15 units of Y, and that consumer B has 15 units of X and 5 units of Y. Is this allocation Pareto efficient? Let Px and Py be the prices of goods X and Y, respectively. Write down expressions for the two individuals' budget constraints.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.4P
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ketch the indifference
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