Draw edgeworth box diagram for this exchange economy

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Reference no: EM131166805

Consider a pure exchange market with two goods ( X and Y) and two consumers (1 and 2) with utilities

U1 ( X1, Y1) = 2 log X1 + log Y1

U2 ( X2, Y2) = log X2 + 2 log Y2

The initial endowments for consumer 1 is (2,1) and for consumer 2 is (0,3)

a) Draw the edgeworth box diagram for this exchange economy

b) What would be the competitive equilibrium?

c) Draw the contract curve in the Edgeworth diagram?

Reference no: EM131166805

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