Question
Consider a 2 2 pure exchange economy where preferences are u A = x A1 x A2 , uB = min{x B1 , x B2
Consider a 2 2 pure exchange economy where preferences are uA= xA1xA2, uB = min{xB1, xB2}. For a given inital interior endowment, let (x*A, x*B) be the Walrasian equilibrium allocation. What would happen if we changed B's utility to uB = min{xB1, 2xB2}?
How do you represent them on diagrams?
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
