2.Edgeworth Boxes

Illustrate the following endowment economies with 2 people and 2 goods in an Edgeworth box. To receive full marks you must label your graphs properly.

1. Eleanor has a utility function ofuE(c1,c2) =c1+2c2. Chidi has a utility func- tion ofuC(c1,c2) =10c2+5c2. They have identical endowments ofeE=eC= (2,2).
2. Jason has autility function of uJ(c1,c2)=ln(c1)+21ln(c2). Tahani has a utility function ofuT(c1,c2) =min{c1,c2}. The endowments areeJ= (1, 2)andeT=(2,1).
3. Michael has a utility function ofuM(c1,c2) =c1+c2. Shawn has a utility function ofuS(c1,c2) =5(c1+c2). The endowments areeM= (0, 1)andeS=(2,1).
4. Do Michael and Shawn have the same utility representation? Explain your answer in one sentence.
5. Will Michael and Shawn trade? Explain your answer in one sentence.