HW06 - A =(300 600 u A x y = x 1 2 y 1 2 e B =(600 900 u B...

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Economics 11 – Winter 2006: Homework Assignment #6 Due: Wednesday February 22, 2006 For each of the following, draw a carefully labelled Edgeworth box diagram. Find, and show on your sketch: endowments indifference curves through the endowments the individually rational set (the set of allocations that are at least as good as the endowments for both people) the Pareto set the contract curve the equilibrium choices and price 1. Endowments and utility functions of the consumers are: e
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Unformatted text preview: A = (300 , 600) u A ( x, y ) = x 1 / 2 y 1 / 2 e B = (600 , 900) u B ( x, y ) = x 1 / 2 y 1 / 2 2. Endowments and utility functions of the consumers are: e A = (300 , 600) u A ( x, y ) = x 1 / 3 y 2 / 3 e B = (600 , 900) u B ( x, y ) = x 2 / 3 y 1 / 3 3. Endowments and utility functions of the consumers are: e A = (600 , 600) u A ( x, y ) = x 1 / 3 y 2 / 3 e B = (300 , 900) u B ( x, y ) = x 2 / 3 y 1 / 3 Compare your pictures. What is the same? What is different? Why?...
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This note was uploaded on 04/01/2010 for the course ECON Econ 11 taught by Professor Mcdevitt during the Fall '07 term at UCLA.

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