Pure exchange economy with no free disposal. There is also i=,l-el = (2, 8) and ell =(8, 2)Utility function ui : R 2+Rul (xI ) = (xI,1)2+ (xI,2) 2 and ulI (xII ) = max{2XII,1 + xII,2, xII,1 + 2XII,2}Find Edgeworth-Box Solution (all kinds of allocations needed - ind. rational, pareto, weaklypareto, core)

The Edgeworth box for an exchange economy with two goods, X and Y, and two agents, A and B. The axes…

Pure exchange economy with no free disposal. There is also i=.||. el = (2, 8) and ell = (8, 2) Utility function ui: R 2+→ R ul (xI) = (xI,1) 2 + (x1,2) 2 and ull (xII) = max {2xII,1 + xII,2, xII, 1+ 2xII,2} Find Edgeworth-Box Solution (all kinds of allocations needed ind. rational, pareto, weakly pareto, core) -

Pure exchange economy with no free disposal. There is also i=.||. el = (2, 8) and ell = (8, 2) Utility function ui: R 2+→ R ul (xI) = (xI,1) 2 + (x1,2) 2 and ull (xII) = max {2xII,1 + xII,2, xII, 1+ 2xII,2} Find Edgeworth-Box Solution (all kinds of allocations needed ind. rational, pareto, weakly pareto, core) -

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Review Appendix 2A of Griffin (on Lagrangian Method). Especially go over Box 2A.1. Using the utility function U = (x^1)(5w^1)(5), income = 40k, p_x = 1, find the demand function for water. (Follow the same steps.).
The utility possibility frontier is defined as the set of maximum utility levels for all consumers that is feasible in the economy, given resource constraints and preferences. For a two-consumer economy, it is defined formally as the solution to: u (ūB) = max u A (xA) subject to ug(xB) > ūg and (xA, XB)feasible. For each of the economies above, find an equation for the utility possibilities frontier, and graph it.
A consumer has preferences on Amazon original shows (x), and the composite good (y) described as u(x,y) = x2y (HINT: MUx = 2xy and MUy = x2) and she has I = $300 budget in total. Assume pY = $1, so we can think of y as the saved dollars in her pocket for other uses. Now, if she is not an amazon prime member, each show costs pX = $10, but if she is a prime member, then pX = $4. Amazon prime membership costs $120. (a) Draw her feasible budget set on the x-y axis for the no-prime-membership case, and the prime-membership case, separately. (b) If she chooses not to be a prime member, what is her optimal bundle (x,y) ?(c) If she chooses to become a prime member, what is her optimal bundle (x,y) ?(d) What is her optimal utility in (b)?in (c)? Would she want to become a prime member?
Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. Consumer A is initially endowed with 10 units of good 1 and 10 units of good 2. Consumer B is initially endowed with 2 units of good 1 and 2 units of good 2. The consumers have the following utility functions: ua(X1a,X2a)=X1AX2A²; uB(x1B,X2B)=X1B+X2g. Among the prices below, which ones are Walrasian equilibrium prices? O a. p1=3, p2 =2 O b. p1=4, P2 =5 O C. None of the other answers. O d. p1=5, p2 =4 O e. P1=2, p2 =3
image attached
Suppose you find that MU1(X1Xx2)=2x2 and MU₂(x1+x₂)=2x1. What is the rate at which the consumer is willing to trade good 2 for good 1 at bundle (2,4)? (Note: enter a positive number, i.e. enter the quantity of good 2 that the consumer is willing to give up for an additional-marginal-unit of good 1.) Question 20 Suppose you find that the expressions of the marginal utilities for a consumer are given by MU1 (1,2)= 2 and MU₂ (1,2)= 7. Then you can conclude that: This consumer has Cobb-Douglas tastes For this consumer good 1 and good 2 are perfect complements For this consumer good 1 and good 2 are perfect substitutes None of the above Question 21 Suppose a consumer is always willing to give up 5 units of good 2 for an additional unit of good 1. For this consumer: Good 1 and good 2 are perfect complements Good 1 and good 2 are perfect substitutes Good 1 and good 2 are both essential goods None of the above
Knowing that Caesar's preferences over apples (X) and oranges (Y) can be represented by the utility function U = 2X0.5y0.5, select the correct option about the bundles on the graph: ORANGES A D ● B E APPLES Caesar's ranking is, definitely, E>D> C>A-B. Caesar's ranking is, possibly, E> A-B>D>C. O We do not have enough information to know how Caesar ranks these bundles. O A and C might be on the same indifference curve.