Question: Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = Min(X,Y) Ug(X,Y) = 2X +Y The

Suppose there are two consumers, A and B.

The utility functions of each consumer are given by:

UA(X,Y) = Min(X,Y)

Ug(X,Y) = 2X +Y

The initial endowments are:

X = 4; Y = 6
X = 4; Y = 4

Draw an Edgeworth Box for this problem, with good X along the horizontal axis and good Y along the vertical axis. Identify each consumer's initial endowment within the Edgeworth Box, and draw each consumer's indifference curve that runs through their initial endowments.

What is the width of the Edgeworth Box along the horizontal dimension?

The width of the Edgeworth Box along the horizontal dimension is ........

What is the length of the Edgeworth Box along the vertical dimension?

The length of the Edgeworth Box along the vertical dimension is ...........

Is the initial endowment Pareto efficient?

Type "yes" or "no" in the blank:

Now suppose Consumer A gets all of both goods. Is this allocation Pareto efficient?

Type "yes" or "no" in the blank:

Now suppose Consumer B gets all of both goods. Is this allocation Pareto efficient?

Type "yes" or "no" in the blank:

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