Question
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: U A (X,Y) = X 1/3 *Y 2/3
Suppose there are two consumers, A and B.
The utility functions of each consumer are given by:
UA(X,Y) = X1/3*Y2/3
UB(X,Y) = X + 6Y
Suppose that there is a total of 12 units of Good X and a total of 12 units of Good Y.
Using an Edgeworth Box, illustrate the contract curve. Be sure that your graph is completely and accurately labeled.
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
