=+5. Fill in the missing information in the following tables. For each table, use the information provided

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=+5. Fill in the missing information in the following tables. For each table, use the information provided to identify a possible trade. Then identify the final allocation and a possible value for the MRS at the efficient solution. (Note: There is more than one correct answer.) Illustrate your results using Edgeworth box diagrams.

a. Norman’s MRS of food for clothing is 1 and Gina’s MRS of food for clothing is 4:

IndIvIdual InItIal allocatIon trade FInal allocatIon norman 6F, 2c Gina 1F, 8c

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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