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There are 100 units of x 1 and 100 units of x 2 . Consumers 1 and 2 are each endowed with 50 units of
There are 100 units of x1 and 100 units of x2. Consumers 1 and 2 are each endowed with 50 units of each good. Consumer 1 says, 'I love x1, but I can take or leave x2'. Consumer 2 says, 'I love x2, but I can take or leave x1'. (a) Draw an Edgeworth box for these traders and sketch their preferences. (b) Identify the core of this economy. (c) Find all Walrasian equilibria for this economy.
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