What do the indifference curves look like

Reference no: EM13689581

Assume an economy where both agents see the goods as perfect compliments at a ratio of one to one. What do the indifference curves look like? Assume an equal supply of each good. Show via an edge worth box, the Contract Curve. Assume the endowment is split evenly between both George and Harriet (and 2 units of each good overall). Find the equilibrium quantities. What is the set of possible equilibrium prices? Now assume that George has an additional unit of good 1. So there is an extra amount of good1 in the overall economy. Repeat the analysis.

Reference no: EM13689581

Questions Cloud

Productions functions exhibit increasing return of scale : Are the following productions functions exhibit increasing/constant/decreasing return to scale? Given that the wage rate for per unit of labor is $10 and rental rate for unit of capital is $10, according to these functions, are the firms operate in e..

Write linus production function : Linus sells hot dogs outside the Dakota Dome during tailgating. He needs exactly one hot dog and one bun to create a hot dog he can sell. Assume no condiments.

The price of elasticity of demand for broccoli : Normal 0 false false false EN-US X-NONE X-NONE Suppose that before the dro..

What do the indifference curves look like : Assume an economy where both agents see the goods as perfect compliments at a ratio of one to one. What do the indifference curves look like? Assume an equal supply of each good.

Tax in market with substitutes may increase efficiency : Show through a diagram, an example where a second tax in a market with substitutes may increase efficiency. Argue through words why this is an intuitive result.

Larue tile and carpets has average retail sales : Normal 0 false false false EN-US X-NONE X-NONE Larue Tile and Carpets has ..

Proportion of defective items coming off a production line : Normal 0 false false false EN-US X-NONE X-NONE A quality control engineer ..

User Account

All Pages