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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