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Please draw its diagram Consider the following pure exchange economy with two consumers and two goods. Consumer 1 has utility given by U1 = min
Please draw its diagram
Consider the following pure exchange economy with two consumers and two goods.
Consumer 1 has utility given by U1 = min {4x1, 2x2}
Consumer 2 has utility given by U2 = 2x1 + x2
The initial endowment has consumer 1 starting with 200 units of x1 and 200 units of x2. Consumer 2 starts with 300 units of x1 and 300 units of x2.
Draw an Edgeworth box diagram for this initial endowment, complete with the indifference curves for each individual.
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