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

See similar textbooks

Similar questions

8. Andrew and Vladimir are neighbours who enjoy consuming caviar. The demand curve for caviar for Andrew and Vlad are given as follows: Andrew: Vladimir: p = 40-q. p = 80 - 4q. If Andrew and Vladimir are the only two consumers of caviar the market demand curve is kink at the price equals to: a. p = 40 b. p = 20 c. p = 10 d. p = 25
which answer is correct among the provided ones the answer i got is provided on the image which is incorrect
Dear Expert hero pro Hand written solution is not allowed.
24
i need help with question 3
Ginny likes to eat Bertie Bott’s Every Flavour Beans (b), and Chocolate Frogs (f). Herpreferences over these lollies are Cobb-Douglas, and can be presented by the utility functionu(b, f) = 1/5(b − 2)(f + 3). Each Every Flavour Bean costs 25 Knuts and each Chocolate Frogcosts 12 Knuts. Ginny has 314 Knuts to spend. Assume that beans and frogs are both perfectlydivisible goods.(a) Find Ginny’s optimal bundle.(b) Suppose that Ginny is mugged by Draco on her way to the lolly cart, so that by the timeshe is there, she is left only with 75 Knuts. What is her optimal bundle now?(c) Now, consider the general case, where Ginny’s income is m, the price of Every FlavourBeans is pb, and the price of Chocolate Frogs is given by pf . In other words, treat ChocolateFrogs as the numeraire. Find Ginny’s demand for each good in terms of m, pb and pf .(d) Find the good on which Ginny will always spend more than half of her income.(e) Find the own-price, cross-price, and income elasticities of good 2…
this homework problem is worded in a very confusing way, I think its option "c"? please help!
2
Grapes and bananas are perfect complements for Jane and Betty. Jane eats one grape per three bananas.; Betty eats three grapes per one banana. Once they go to sports for hours, Jane had 20 grapes and 10 bananas and Betty had 10 grapes and 20 bananas. (assume that grapes and bananas can be divided into half) 1.Show all Pareto optimal allocations of grapes and bananas between Jane and Betty in the Edgeworth Box. Draw a bunch of indifference curves and look for tangencies.
d and e please
9. Consider an Edgeworth box economy with two consumers, whose utility func- tions and endowments are u'(x},x}) = (x}Xx})} (5,5) In the following, use the normalization p2 = 1. (a) Find the competitive equilibrium price. (b) State the first fundamental theorem of welfare and verify that it holds in this economy. (e) Consider the allocation ĩ = (x',) = (2,3), (8, 7). Show whether this allo- cation can supported as an equilibrium with transfers. (d) State the second fundamental theorem of welfare, and briefly discuss whether the result in part (c) conform with or violate this theorem. 3.