Question 4: Consider an economy with two goods (apples and oranges) and two agents, Elisa and Bob. Elisa is initially endowed with w= (5; 30) of apples and oranges respectively and Bob endowment w (20; 20). Elisa and Ben have the same utility given by U(x2, x2)=2lnx₁ + 2lnx2 Plot an Edgeworth box and mark the initial endowments.
Question 4: Consider an economy with two goods (apples and oranges) and two agents, Elisa and Bob. Elisa is initially endowed with w= (5; 30) of apples and oranges respectively and Bob endowment w (20; 20). Elisa and Ben have the same utility given by U(x2, x2)=2lnx₁ + 2lnx2 Plot an Edgeworth box and mark the initial endowments.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.5P
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Transcribed Image Text:Question 4:
Consider an economy with two goods (apples and oranges) and two agents, Elisa and Bob. Elisa
is initially endowed with w= (5; 30) of apples and oranges respectively and Bob endowment
w (20; 20). Elisa and Ben have the same utility given by
U(x2, x2)=2lnx₁ + 2lnx2
Plot an Edgeworth box and mark the initial endowments.
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