2. Suppose XiaoMing and XiaoLan have the same income and same tastes over Ultraman cards and...

   

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2. Suppose XiaoMing and XiaoLan have the same income and same tastes over Ultraman cards and "other goods." The only difference between them is that XiaoLan has a coupon that allows her to buy as many cards as she wants at 50% off. On a graph with Ultraman cards on the horizontal axis and "other goods" as numeraire on the vertical axis, illustrate the most XiaoMing is willing to pay for the coupon (mark it as M on the vertical axis). Illustrate the least XiaoLan would be willing to accept to give up her coupon (mark it as L). If Ultraman cards are normal good for both XiaoMing and XiaoLan, will they be able to make a deal? Interpret. 2. Suppose XiaoMing and XiaoLan have the same income and same tastes over Ultraman cards and "other goods." The only difference between them is that XiaoLan has a coupon that allows her to buy as many cards as she wants at 50% off. On a graph with Ultraman cards on the horizontal axis and "other goods" as numeraire on the vertical axis, illustrate the most XiaoMing is willing to pay for the coupon (mark it as M on the vertical axis). Illustrate the least XiaoLan would be willing to accept to give up her coupon (mark it as L). If Ultraman cards are normal good for both XiaoMing and XiaoLan, will they be able to make a deal? Interpret. 2. Suppose XiaoMing and XiaoLan have the same income and same tastes over Ultraman cards and "other goods." The only difference between them is that XiaoLan has a coupon that allows her to buy as many cards as she wants at 50% off. On a graph with Ultraman cards on the horizontal axis and "other goods" as numeraire on the vertical axis, illustrate the most XiaoMing is willing to pay for the coupon (mark it as M on the vertical axis). Illustrate the least XiaoLan would be willing to accept to give up her coupon (mark it as L). If Ultraman cards are normal good for both XiaoMing and XiaoLan, will they be able to make a deal? Interpret.

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The question youve presented seems to be related to economics specifically focusing on consumer behavior and trade XiaoMing and XiaoLan are two indivi... View the full answer