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bubai Group Title

There are two individuals A and B and two goods X and Y. The utility functions of A and B are given by UAXA and UB = X2B + Y2B respectively where Xi ,Yi are consumption levels of the two goods by individual i, i = A, B. (a) Draw the indifference curves of A and B. (b) Suppose A is endowed with 10 units of Y and B with 10 units of X. Indicate the endowment point in a box diagram. (c) Draw the set of Pareto optimal allocation points in the box diagram.

  • 9 months ago
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