Question
Consider a 2-person, 2-good economy. Endowments and utility functions are: e e u(x, y) = min {x,y} u(x, y) = x+y Draw a carefully
Consider a 2-person, 2-good economy. Endowments and utility functions are: e e u(x, y) = min {x,y} u(x, y) = x+y Draw a carefully labeled Edgeworth box diagram showing: = (1, 2) (3,2) 7 1 a) endowments b) indifference curves through the endowments the set of allocations that both agents prefer to the endowments
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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