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# In a pure exchange economy, Olly utility function is U_o (x,y) = 3x+y and Fays utility function is U_f(x,y) = xy. Ollys initial allocation is 1x and...

I need help with this question: In a pure exchange economy, Olly utility function is U_o (x,y) = 3x+y and Fays utility function is U_f(x,y) = xy. Ollys initial allocation is 1x and no y. Fays initial allocation is no x and 2y. Draw an edgeworth box for fay and olly. Put x on the horizontal axis and y on the vertical axis. measure goods for olly from the lower left and goods for fay from the upper right . Mark the initial allocation with the letter W. the locus of pareto optimal points consists of two line segments. describes these line segments in words or formulas and show them on your graph.

Q) In a pure exchange economy, Olly utility function is U_o (x,y) = 3x+y and Fays utility function
is U_f(x,y) = xy. Ollys initial allocation is 1x and no y. Fays initial allocation is no x and 2y....

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