Budget constraint from the competitive equilibrium price

Assignment Help Business Economics
Reference no: EM131092101

A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3). Person B is endowed with (480,180) and has a utility function Ub(Xb,Yb)=X^(1/3)Y^(2/3).

Draw an edgeworth box showing the following: The initial endowment, the IC that go through the initial endowment for each consumer, the CE point, the IC’s through that point for each consumer, and the budget constraint from the competitive equilibrium price.

Reference no: EM131092101

Questions Cloud

Background and summary of globe : The Wharton Business School of the University of Pennsylvania was the home of the GLOBE Research Project, which investigated variations in business leadership worldwide. GLOBE comprised 170 researchers in 62 societies over 11 years. The research..
How would you administer and score the assessments : How would you determine the organization's needs? What levels of assessment would you focus on? What types of assessments would you recommend? What assessments would you select?
The goodwill asset : Question 1.Which of the following items would be included in the Goodwill asset?patents, trademarks, customers lists, synergies & brand names Question2.Corporation S sold investment land to Corporation P for $100,000 cash. Corporation S's
Should cognitive performance-enhancing drugs be used : Should cognitive performance-enhancing drugs be used by healthy people? Why or why not? What could be the benefits/downsides/risks? Be sure to bring something of your own to the discussion, supporting your position with correctly source credite..
Budget constraint from the competitive equilibrium price : A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3). The initial endowment, the IC that go through the initial endowm..
Describe their price elasticity of demand : Address the following: Price elasticity of demand refers to the percentage change in demand resulting from a percentage change in price. Please review the definition of relative inelasticity and relative elasticity. These terms refer to how much dema..
Competitive equilibrium from the initial allocation : A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3) . Person B is endowed with (480,180) and has a utility function U..
Calculate the change in the budget balance : Public Affairs 854 Spring 2011 - Midterm 1. Calculate the change in the trade balance for a given change in government spending. Calculate the change in the budget balance for a change in the real exchange rate
Twelfth federal reserve district so geographically? large : Why is the Twelfth Federal Reserve district so geographically? large, while the Second Federal Reserve district is so small by? comparison?

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the loss of economic welfare

Calculate the loss of economic welfare caused by the monopolistic . If some of this lost welfare would have been producer surplus, why is the monopolist willing to forgot this surplus?

  Compute of barbs income tax due to or from the irs

Barb age 25, files as a single taxpayer. She is employed at a monthly salary of $2,150. She claims no dependents. Her employer withheld $1,600 from her wages for income taxes for 12 months' of work. Compute of Barb’s income tax due to or from the IRS..

  The main discussion question is interesting

The main discussion question is an interesting one this week, but the realm of exchange rates has a major influence on macroeconomics. As economies become more and more open in trade, the value of a nation's currency can influence GDP and interest ra..

  Qevaluate relationship among the european euro crisis in

q.evaluate relationship among the european euro crisis in 2012 as well as the american economy. evaluate how this

  Analyzing arguments

How can they be important to an argument? What are some of the problems one faces when they are trying to determine authorial intent? Is the author always right about what they intended? Might an argument have a meaning that the author did not intend..

  What is farmer perk profit-maximizing level of output

You are an economic consultant for Farmer Perk, who produces raw cotton and sells it in a perfectly competitive market. Illustrate what is Farmer Perk's profit-maximizing level of output.

  Most difficult time dealing with scarcity

Who in the Ethiopian society has the most difficult time dealing with scarcity? How can their society provide for their wants and needs? Why are they so impoverished? What can their governments do to help, or hinder their country's development?

  Discussion-with marketers increasingly adopting

Take a position: Mass marketing is dead versus mass marketing is still a viable way to build a profitable brand. Discussion-with marketers increasingly adopting more and more refined market.

  The predictive power of the heckscher-ohlin model

The predictive power of the Heckscher-Ohlin model, at least in terms of forecasting the volume of trade, appears to undergo improvement upon abandonment of the assumption. The gravity model states that trade between two countries will increase if the..

  Deposits in the banking system and money supply increase

You take $1000 you had kept under your mattress and deposit it in your bank account. If this $1000 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits, by how much does the total amount of deposits in th..

  Compute the test statistic

We want to determine if the training program was effective. Compute the test statistic. At 95% confidence, test the hypotheses. That is, did the training program actually increase the production rates?

  Value of marginal product of labour

Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 yuan. If Starbucks is maximising its profit, what is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd