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Consider a 2 consumer 2 good pure exchange economy. Suppose consumer A has pref- erences represented by x + 4y. Suppose consumer B has preferences
Consider a 2 consumer 2 good pure exchange economy. Suppose consumer A has pref-
erences represented by x + 4y. Suppose consumer B has preferences represented by min{2x + y, x + 2y}. Suppose that the economy has 30 units of good x and 20 units of good y.
- Provide a representation of the Edgeworth Box and clearly indicate the weak and strong Pareto Sets.
- Suppose that the endowment is ((8, 2), (22, 18)). What is the Walrasian equilibrium?
- Suppose that the endowment is ((20, 10), (10, 10)). What is the Walrasian equilibrium?
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