1. Suppose Ann has an initial allocation of 50 units of food and 100 units of clothing...

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1. Suppose Ann has an initial allocation of 50 units of food and 100 units of clothing in Figure 18W.4. She regards food and clothing as perfect, 1-for-1 substitutes. Bill regards them as perfect, 1-for-1 complements, always wanting to consume 1 unit of clothing for every unit of food. Describe the set of allocations that are Pareto preferred to the initial allocation.

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Microeconomics And Behavior

ISBN: 9780073375946

8th Edition

Authors: Robert Frank, David Colander

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