Question
Consider the following pure-exchange economy with two consumers: Siobhan and Trevan, and with two goods: y and x. There are a total of 10 units
Consider the following pure-exchange economy with two consumers: Siobhan and Trevan, and with two goods: y and x. There are a total of 10 units of y and 15 units of x in the economy. Siobhan and Trevan have utility function's defined by US = 3x+ 2y and UT" = 2x + 3y.
A. Using the Edgeworth Box below draw and label an indifference curve for Siobhan where US = 30 and draw and label an indifference curve for Trevan where US = 30. Hint: Set the value for US, then solve for y. This will give you a line of form y = mx + b. note: Do the same for Trevan, but don't forget to rotate the page.
10 0 Trevan -5 -5- Siobhan -on 10 10 15Step by Step Solution
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