14 Consider A Pure Exchange Economy With Two Consumers A B And Two Goods X Y Suppose The Total Stock Of X And Y Is 1 (77.82 KiB) Viewed 13 times
Is the answer (b) because both the utility functions are the same and denote perfect substitutes? Can someone help with the edgeworth box diagram for this question?
14. Consider a pure exchange economy with two consumers A & B and two goods x & y. Suppose the total stock of x and y is 4 units cach and each consumer has a utility function U = x; +y;, i = A, B. The set of Pareto optimal points will be a. the diagonal of the Edgeworth box the entire Edgeworth box the horizontal axis of the Edgeworth box the vertical axis of the Edgeworth box C. 18-
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