=+B. Suppose that the tastes for individuals 1 and 2 can be described by the utility functions
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=+B. Suppose that the tastes for individuals 1 and 2 can be described by the utility functions u 1 5 x1 a
x2 112a2 and u 2 5 x1 b
x2 112b2
(where a and b both lie between 0 and 1). Some of the following questions are notationally a little easier to keep track of if you also denote E1 5 e1 1 1 e1 2
as the economy’s endowment of x1 and E2 5 e2 1 1 e2 2
as the economy’s endowment of x2
.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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