Consider an economy with two agents, Amy and Becky, and two goods, x and y. Amy's utility function is UA(x, y) = XAYA, and Becky's utility function is UB = min{4xB, YB} Amy and Becky's endowments are...


Consider an economy with two agents, Amy and Becky, and two goods, x and y. Amy's utility<br>function is UA(x, y) = XAYA, and Becky's utility function is UB = min{4xB, YB} Amy and<br>Becky's endowments are both wA = WB = (4, 1). Suppose that the contract curve in this economy<br>can be represented as YA = mxA. Find m.<br>Answer:<br>The correct answer is: 4.0<br>In an exchange economy there are two people (A and B), and two goods (x and ). Their respective<br>utility functions and endowments are: UA(xA, YA) = 5xA + YA, UB(xB, YB) = XB + 5yB;<br>WA = WB = (10, 10). What is the minimum possible amounts of xA in the core? Round your<br>answer to 2 decimal points.<br>Answer:<br>The correct answer is: 12.00<br>

Extracted text: Consider an economy with two agents, Amy and Becky, and two goods, x and y. Amy's utility function is UA(x, y) = XAYA, and Becky's utility function is UB = min{4xB, YB} Amy and Becky's endowments are both wA = WB = (4, 1). Suppose that the contract curve in this economy can be represented as YA = mxA. Find m. Answer: The correct answer is: 4.0 In an exchange economy there are two people (A and B), and two goods (x and ). Their respective utility functions and endowments are: UA(xA, YA) = 5xA + YA, UB(xB, YB) = XB + 5yB; WA = WB = (10, 10). What is the minimum possible amounts of xA in the core? Round your answer to 2 decimal points. Answer: The correct answer is: 12.00

Jun 07, 2022
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