Consider the following pure exchange economy with different consumer preferences and endowments (e.g. w = (w/w)),...

 

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Consider the following pure exchange economy with different consumer preferences and endowments (e.g. w = (w/w)), and answer the following question: (a) Draw the Edgeworth box and the endowment point. (b) Find the Pareto set and plot it on the graph. (c) Calculate each consumer's demand function for each goods. (d) Verify Walras's Law. (e) Calculate the Walrasian equilibrium for this economy. Question 1 0.5 A = AVA up = x³y² = (30, 20), = (10, 20) Question 2 70.2, 0.8 0.4.0.6 A = (60, 25), (40,25) = Question 3 u₁=₁ undub, w = (1,2), w" = (2,1) Consider the following pure exchange economy with different consumer preferences and endowments (e.g. w = (w/w)), and answer the following question: (a) Draw the Edgeworth box and the endowment point. (b) Find the Pareto set and plot it on the graph. (c) Calculate each consumer's demand function for each goods. (d) Verify Walras's Law. (e) Calculate the Walrasian equilibrium for this economy. Question 1 0.5 A = AVA up = x³y² = (30, 20), = (10, 20) Question 2 70.2, 0.8 0.4.0.6 A = (60, 25), (40,25) = Question 3 u₁=₁ undub, w = (1,2), w" = (2,1)

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Question 1 a The Edgeworth box can be drawn and an endowment point can be pointed out using the give... View the full answer