In a pure exchange economy with two goods, G and H, the two traders have Cobb Douglas utility functions Amos ' utility is Ua (Ga ) (H) (1 ) and Elises is Ue (Ge) (He) (1 ) What are their marginal rates of substitution Between them, Amos and Elise own 100 units of G and 50 units of H Thus, If Amos h...

Amma ds the data s infomation The CobbLouglan utility duneton f tao tradou Amo and E ...

In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility

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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua= (Ga )^∝ (H∝)^(1-∝) and Elise’s is Ue= (Ge)^β (He)^(1-β). What are their marginal rates of substitution? Between them, Amos and Elise own 100 units of G and 50 units of H. Thus, If Amos has Ga and Ha, Elise has Ge =100-Ga and He =50-Ha. Solve for their contract curve.

Solve for their contract curve. Show all your calculations clearly from your marginal utilities.

Posted Date: Oct 23, 2021 02:55 AM

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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility

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