5. Arslan and Belgin consume two goods, q1 and 92. function is UA = 9A19A2 UB...

 

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5. Arslan and Belgin consume two goods, q1 and 92. function is UA = 9A19A2 UB = 9B19B2 Their endowments are 9A = 10, 9A2 = 20, 9B = 20, 9B2 = 10. (a) Find the marginal rates of substation for each person. (b) Determine whether the endowment point is a Pareto efficient al- location. (c) Find formula for the contract curve in terms of Arslan's goods, A1 and A2 (d) Find the competitive equilibrium price when p2 = 1. 5. Arslan and Belgin consume two goods, q1 and 92. function is UA = 9A19A2 UB = 9B19B2 Their endowments are 9A = 10, 9A2 = 20, 9B = 20, 9B2 = 10. (a) Find the marginal rates of substation for each person. (b) Determine whether the endowment point is a Pareto efficient al- location. (c) Find formula for the contract curve in terms of Arslan's goods, A1 and A2 (d) Find the competitive equilibrium price when p2 = 1.

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Lets address each part of the question a Marginal Rates of Substitution MRS The marginal rate of sub... View the full answer