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Take Home Assignment 11 Consider an Edgeworth economy in which there are two consumers, A and B. There are two goods, and each agent must
Take Home Assignment 11 Consider an Edgeworth economy in which there are two consumers, A and B. There are two goods, and each agent must consume a non-negative quantity of each of these goods. The agents have the utility functions UA(TIA, TZA) = 2TIA + 12A UB(TIB, 2B) = LIB + 212B The initial resources are: (5,5), i.e. there are five units of each of the goods, 1 and 2. (a) Show that the Utility Possibility Set can be described as the set of (UA, UB) in the non-negative orthant of R satisfying: 0
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