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With q1 I need help with the IC and in particular identifying which directions they go, whether they are normal, compliment or substitute goods. For

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With q1 I need help with the IC and in particular identifying which directions they go, whether they are normal, compliment or substitute goods.

For q2 I need help deciphering how to draw out the IC and plot the endowment properly.

image text in transcribed
1. Indifference Curves (30%, 6% for each subquestion) Consider the following commodities and draw a representative indifference curve for how preferences over these commodity bundles should appear. To receive full marks you must label your graphs properly. Left gloves and right gloves for a person with one left hand and one right hand. One dollar coins and five dollar bills Left boots and right boots for a person with two left feet and no right foot. Left gloves and right gloves for a person with one left hand and two right hand. {DP-09"?\" Apples and rotten apples. 2. Edgeworth Boxes (40%, 8% for each subquestion) Illustrate the following endowment economies with 2 people and 2 goods in an Edgeworth box. To receive full marks you must label your graphs properly. a. Eleanor has a utility function of 115 (01,02) 2 C1 + 202. Chidi has a utility func- tion of ac (c1, (:2) = 10C2 + 5oz. They have identical endowments of e}; = ec = (2, 2) . b. Jason has a utility function of u; (01, C2) = ln(cl) + %ln(c2). Tahani has a utility function of ur (c1,cz) = min {C1,C2}. The endowments are e; = (1,2) and ET = (2, 1) . c. Michael has a utility function of LIA/1021,02) = 81 + 82. Shawn has a utility function of us (cl, C2) = 5 (C1 +132). The endowments are 6M 2 (0,1) and 85 = (2, 1) . d. Do Michael and Shawn have the same utility representation? Explain your answer in one sentence. e. Will Michael and Shawn trade? Explain your answer in one sentence. 1

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