1. For an exchage economy with two consumers (A & B), and two types of goods...

 

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1. For an exchage economy with two consumers (A & B), and two types of goods (10 units of good C & 8 units of good D). (a) Please draw the Edgeworth Box to illustrate this exchange economy. (b) For each of the following situations, please specify the contract curve, (Hint: With equations/conditions in the allocation amounts) and draw the contract curve in the Edgeworth box. (i) u₁(c,d) cd, un(enda)= cud (ii) uA (CA, dA) = 2cA+da, un(en, dn) = cod. (iii) uA (CA, dA) = min (2CA, dA), un(ca.da) = cad 1. For an exchage economy with two consumers (A & B), and two types of goods (10 units of good C & 8 units of good D). (a) Please draw the Edgeworth Box to illustrate this exchange economy. (b) For each of the following situations, please specify the contract curve, (Hint: With equations/conditions in the allocation amounts) and draw the contract curve in the Edgeworth box. (i) u₁(c,d) cd, un(enda)= cud (ii) uA (CA, dA) = 2cA+da, un(en, dn) = cod. (iii) uA (CA, dA) = min (2CA, dA), un(ca.da) = cad