QUIZ11 - R , while for David MRS D x,y = y D /2x D . Also...

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Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen Quiz 11 Two consumers Ron and David, together own 1,000 baseball cards and 5,000 Pokemon cards. Let x R denote the quantity of baseball cards and y R the quantity of Pokemon cards owned by Ron. Let x D denote the quantity of baseball cards and x D the quantity of Pokemon cards for David. Assume that MRS R x,y = y R /x
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Unformatted text preview: R , while for David MRS D x,y = y D /2x D . Also assume that x R =800, y R =800, x D =200 and y D =4,200. a). Draw an Edgeworth box that shows the set of feasible allocations in this simple economy. b). Show that the current allocation of cards is not economically efficient. c). Identify a trade of cards between David and Ron that makes both better off....
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This note was uploaded on 08/08/2008 for the course ECON 301 taught by Professor Hansen during the Spring '08 term at Wisconsin.

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