Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can somebody explain, how did he get that answers? by step by step for me to understand easily Thanks in advance. fb) (4 points) How
Can somebody explain, how did he get that answers?
by step by step for me to understand easily
Thanks in advance.
\fb) (4 points) How much of each good does each consumer demand in equilibrium? Consumer A's Demand for X: |2. Consumer A's Demand for Y: 8 Consumer B's demand for X: Consumer B's demand for Y: D (2 points) What is the marginal rate of substitution for consumer A at the competitive equilibrium? Y= 1 MRS = - MVx Initial endowment 3xy My 3 y XWA = q WAY= 14 d) (10 points) Illustrate the situation in an Edgeworth Box. Be sure to label your box carefully and accurately. Identify the initial endowment and label it W.Identify the competitive equilibrium and label it D. Draw the budget constraint that each consumer faces and identify the values where it intercepts the perimeter of the Edgeworth Box (there are two different intercepts to identify). DA = 12 B Ma= 32 PX = 2 IF Mb = lb Py = 1 AAb 16 16 16 =15Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started