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2. (15 pts.) The Edgeworth Box: An economy consists of two people with utility functions: u₁ = min(x, y) and u₂ = min(x,
Posted: Sun Jul 03, 2022 1:00 pm
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- 2 15 Pts The Edgeworth Box An Economy Consists Of Two People With Utility Functions U Min X Y And U Min X 1 (17.43 KiB) Viewed 15 times
2. (15 pts.) The Edgeworth Box: An economy consists of two people with utility functions: u₁ = min(x, y) and u₂ = min(x, y). Their initial endowments are (ri, y) = (6,6) and (2, 2) = (10, 10). Draw the Edgeworth box for this economy, labeling the axes for each person, the initial endowment, and each person's indifference curve at this initial endowment. Is this economy in equilibrium?