Question;Suppose there are two consumers A and BThe utility functions of each consumer are given byUa(X,Y)=X+YUb(X,Y)=Min(X,Y)The initial endowments areA X=2, Y=4B X=4, Y=2Illustrate the initial endowments in and Edgeworth Box. Be sure to label the Edgeworth Box carefully and accurately, and make sure the dimensions of the box are correct. Also, draw each consumer's indifference curve that runs through the initial endowments. Is this initial endowment Pareto Efficient?
Paper#57507 | Written in 18-Jul-2015Price : $21