16.11. Ted and Joe each consume peaches, x, and plums, y. The consumers have identical10y7x7, MRS = 10yr^TTogether, they have 10 peachesMRSJoeutility functions, withand 10 plums. Verify whether each of the following allocations is on the contract curve:a) Ted: 8 plums and 9 peaches; Joe: 2 plums and 1 peach.b) Ted: 1 plum and 1 peach; Joe: 9 plums and 9 peaches.%3D

We have, A consumer had identical utility function as, Peaches = x and plums = y for Joe is given as…

Ted and Joe each consume peaches, x, and plums, y. The consumers have ider Functions, with MRS = 10y7x7, MRS = 10yTÄTTogether, they have 10 p- plums. Verify whether each of the following allocations is on the contract cur :8 plums and 9 peaches; Joe: 2 plums and 1 peach. •1 plum and 1 peach: Joe: 9 nlums and 9 neaches x.y

Ted and Joe each consume peaches, x, and plums, y. The consumers have ider Functions, with MRS = 10y7x7, MRS = 10yTÄTTogether, they have 10 p- plums. Verify whether each of the following allocations is on the contract cur :8 plums and 9 peaches; Joe: 2 plums and 1 peach. •1 plum and 1 peach: Joe: 9 nlums and 9 neaches x.y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls help with below homework. Assume that the consumers A and B want to maximize utility, that they consume the same goods price ration. What decision rule would they employ, and how would this relate to the Welfare Frontier? (Assume that the goods are X and Y).
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