Suppose Sarah has an endowment of 2 units of X and 4 units of Y and has
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Suppose Sarah has an endowment of 2 units of X and 4 units of Y and has in-difference curves that satisfy our four basic assumptions (see Chapter 3). Sup-pose Brian has an endowment of 4 units of X and 2 units of Y, and has preferences given by the utility function U( X, Y) 5 min {X, Y}, where
On an Edgeworth box diagram, indicate the set of Pareto-superiorbundles.
Transcribed Image Text:
min(X, Y) = { Y if Y X.
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