In an exchange economy there are two people (A and B, and two goods (x1 and x2). Their respective utility functions and endowments are: UA(x1A, x2A) = x1A + 3x2A, UB(x1B, x2B) = 3x1B + x2B, A= (3/2, 3/2), B= (3/2, 3/2). What are the minimum and maximum possible amounts of x1A in the core and is allocation (0, 1.75,3, 1.25) in the core?

Answer rating: 100% (QA)

The contact curve in this case is ... View the full answer