Question: Could you please answer Q7. Q5 is not required to answer as it is provided to help answer Q7. Thanks! 7. Using an Edgeworth Box
Could you please answer Q7. Q5 is not required to answer as it is provided to help answer Q7. Thanks!


7. Using an Edgeworth Box consistent with question 5, show the contract curve when J and K have preferences according to: (a) UK( AK, BK) = 2Ak + 3BK UJ(AJ, BJ) = 5Aj + 2BJ (b) UK( AK, BK) = 2Ak + 3BK UJ(AJ, BJ) = min {2AJ, 4BJ} (c) UK(AK, BK) = 2Ak + 3BK UJ(AJ, BJ) = AB35. Draw an Edgeworth Box for an exchange economy with two consumers, John (J) and Kelly (K) and two goods, Apples (A) and Bananas (B). Put Apples on the horizontal and Bananas on the vertical. Put Kelly's origin in the bottom left corner. Both J and K have strictly positive endowments of both goods with 8:; + cf > e}; + 61;. Show an endowment point in this economy where ej > 6? and e;
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