2 Contract Curve Suppose there are two consumers, A and B. There are two goods, X and Y. There is a total of 5 units of X and a total of 18 units of Y. The consumers' utility functions are given by: U₁(X,Y)= XY³ UB(X,Y)=3X + Y Using an Edgeworth Box, illustrate the contract curve. Your graph must be carefully labeled and you should clearly indicate what allocations in the Edgeworth Box are on the contract curve.

2 Contract Curve Suppose there are two consumers, A and B. There are two goods, X and Y. There is a total of 5 units of X and a total of 18 units of Y. The consumers' utility functions are given by: U₁(X,Y)= XY³ UB(X,Y)=3X + Y Using an Edgeworth Box, illustrate the contract curve. Your graph must be carefully labeled and you should clearly indicate what allocations in the Edgeworth Box are on the contract curve.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQP

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