Display the equilibrium in the edge worth box

Reference no: EM131204603

Consider an economy with two goods and two consumers with preferences

a. Draw the Edge worth box for the economy.

b. Display the equilibrium in the Edge worth box.

c. What is the effect on the equilibrium price of good 2 relative to good 1 of an increase in each consumer's endowment of good 1 by 1 unit?

Reference no: EM131204603

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