- Urgent Help Please 1 (183.97 KiB) Viewed 9 times
URGENT HELP PLEASE!
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answerhappygod
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URGENT HELP PLEASE!
URGENT HELP PLEASE!
Suppose that Eva and Jarod are thinking about trading plums and bananas at the local farmers .25,.5 market. Eva has the following utility function u(p, b) pb and Jarod has the following utility function u(p, b) = pb. Eva has an endowment set of (2,3) and Jarod begins with an endowment set of (3,8). Solve for the marginal rate of substitution for each person at the endowment point. = Part 2 A. What is a trade that Eva would accept but Jarod wouldn't? B. What is a trade that Jarod would accept but Eva wouldn't? C. What is a trade both Eva and Jarod would accept that would be a Pareto improvement (it doesn't have to be Pareto optimal)? Part 3 Find two Pareto optimal points along the contract curve
Suppose that Eva and Jarod are thinking about trading plums and bananas at the local farmers .25,.5 market. Eva has the following utility function u(p, b) pb and Jarod has the following utility function u(p, b) = pb. Eva has an endowment set of (2,3) and Jarod begins with an endowment set of (3,8). Solve for the marginal rate of substitution for each person at the endowment point. = Part 2 A. What is a trade that Eva would accept but Jarod wouldn't? B. What is a trade that Jarod would accept but Eva wouldn't? C. What is a trade both Eva and Jarod would accept that would be a Pareto improvement (it doesn't have to be Pareto optimal)? Part 3 Find two Pareto optimal points along the contract curve