Question [1]: For each of the following pure exchange economies with 2 goods and 2 consumers, draw a well labelled representation of the Edgeworth Box and clearly indicate and/or describe the Pareto Set, i.e. the set of Pareto optimal allocations. Indicate the set of allocations that are only weakly Pareto optimal if there are such allocations. 1. u*(x, y) = x+ Vy; u² (x,y) = 8x + y; Total endowment (10, 20) 2. u4(x, y) = min{x,y}; uB (x, y) = x + 2/ỹ; Total endowment (10, 15)
Question [1]: For each of the following pure exchange economies with 2 goods and 2 consumers, draw a well labelled representation of the Edgeworth Box and clearly indicate and/or describe the Pareto Set, i.e. the set of Pareto optimal allocations. Indicate the set of allocations that are only weakly Pareto optimal if there are such allocations. 1. u*(x, y) = x+ Vy; u² (x,y) = 8x + y; Total endowment (10, 20) 2. u4(x, y) = min{x,y}; uB (x, y) = x + 2/ỹ; Total endowment (10, 15)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer 2nd question ONLY.
![Question [1]: For each of the following pure exchange economies with 2 goods and 2
consumers, draw a well labelled representation of the Edgeworth Box and clearly indicate
and/or describe the Pareto Set, i.e. the set of Pareto optimal allocations. Indicate the set
of allocations that are only weakly Pareto optimal if there are such allocations.
1. u4(x, y) = r + Vy; uB (x, y) = 8x + y; Total endowment (10, 20)
2. u4(x, y) = min{x, y}; u² (x, y) = x + 2/ỹ; Total endowment (10, 15)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac8495e5-e8f6-4fac-afcd-e3d1098a0ed0%2F53b108ad-e400-4361-b462-7ca77dbd61fd%2F1vm8m5_processed.png&w=3840&q=75)
Transcribed Image Text:Question [1]: For each of the following pure exchange economies with 2 goods and 2
consumers, draw a well labelled representation of the Edgeworth Box and clearly indicate
and/or describe the Pareto Set, i.e. the set of Pareto optimal allocations. Indicate the set
of allocations that are only weakly Pareto optimal if there are such allocations.
1. u4(x, y) = r + Vy; uB (x, y) = 8x + y; Total endowment (10, 20)
2. u4(x, y) = min{x, y}; u² (x, y) = x + 2/ỹ; Total endowment (10, 15)
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