B. y6 Consider an exchange economy with two individuals, a and b, and two goods, x and y. Individual a has utility function Uª(x,y) = x²y, and individual b has utility function U*(x,y) = 3x+4y. What condition will hold at all Pareto efficient allocations in the interior of the Edgeworth box? %3D A. ***8ya = 3xa 3 C. 8yb = 3xb D. y° = 2x°

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Your Question:
B. y6
Consider an exchange economy with two individuals, a and b, and two goods,
x and y. Individual a has utility function Uª(x,y) = x²y, and individual b has
utility function U*(x,y) = 3x+4y. What condition will hold at all Pareto efficient
allocations in the interior of the Edgeworth box?
%3D
A. ***8ya = 3xa
3
C. 8yb = 3xb
D. y° = 2x°
Transcribed Image Text:B. y6 Consider an exchange economy with two individuals, a and b, and two goods, x and y. Individual a has utility function Uª(x,y) = x²y, and individual b has utility function U*(x,y) = 3x+4y. What condition will hold at all Pareto efficient allocations in the interior of the Edgeworth box? %3D A. ***8ya = 3xa 3 C. 8yb = 3xb D. y° = 2x°
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