Exam 32:Exchange-Part B

In Problem 2,Astrid's utility function is U(H_A,C_A)=H_AC_A.Birger's utility function is min{H_B,C_B}.If Astrid's initial endowment is no cheese and 13 units of herring and if Birger's initial endowments are 12 units of cheese and no herring,then where p is a competitive equilibrium price of herring and cheese is the numeraire,demand equals supply in the herring market.This implies that

An economy has two people,Charlie and Doris.There are two goods,apples and bananas.Charlie has an initial endowment of 3 apples and 8 bananas.Doris has an initial endowment of 6 apples and 4 bananas.Charlie's utility function is U(A_C,B_C)=A_CB_C,where A_C is his apple consumption and B_C is his banana consumption.Doris's utility function is U(A_D,B_D)=A_DB_D,where A_D and B_D are her apple and banana consumptions.At every Pareto optimal allocation,

In Problem 1,suppose that Morris has the utility function U(b,w)= 4b + 12w and Philip has the utility function U(b,w)= bw.If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box,then the contract curve contains

In Problem 2,Astrid's utility function is U(H_A,C_A)=H_AC_A.Birger's utility function is min{H_B,C_B}.If Astrid's initial endowment is no cheese and 8 units of herring and if Birger's initial endowments are 7 units of cheese and no herring,then where p is a competitive equilibrium price of herring and cheese is the numeraire,demand equals supply in the herring market.This implies that

In Problem 2,Astrid's utility function is U(H_A,C_A)=H_AC_A.Birger's utility function is min{H_B,C_B}.If Astrid's initial endowment is no cheese and 20 units of herring and if Birger's initial endowments are 9 units of cheese and no herring,then where p is a competitive equilibrium price of herring and cheese is the numeraire,demand equals supply in the herring market.This implies that

In Problem 4,Ken's utility function is U(Q_K,W_K)= Q_KW_K and Barbie's utility function is U(Q_B,W_B)=Q_BW_B.If Ken's initial endowment were 3 units of quiche and 7 units of wine and Barbie's endowment were 6 units of quiche and 7 units of wine,then at any Pareto optimal allocation where both persons consume some of each good,

An economy has two people,Charlie and Doris.There are two goods,apples and bananas.Charlie has an initial endowment of 6 apples and 4 bananas.Doris has an initial endowment of 12 apples and 2 bananas.Charlie's utility function is U(A_C,B_C)=A_CB_C,where A_C is his apple consumption and B_C is his banana consumption.Doris's utility function is U(A_D,B_D)=A_DB_D,where A_D and B_D are her apple and banana consumptions.At every Pareto optimal allocation,

In Problem 3,Professor Nightsoil's utility function is U_N(B_N,P_N)= B_N +4p^1/2_N and Dean Interface's utility function is U_I(B_I,P_I)=B_I + 2p^1/2_I.If Nightsoil's initial endowment is 7 bromides and 5 platitudes and if Interface's initial endowment is 8 bromides and 10 platitudes,then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

In Problem 4,Ken's utility function is U(Q_K,W_K)=Q_KW_K and Barbie's utility function is U(Q_B,W_B)=Q_BW_B.If Ken's initial endowment were 4 units of quiche and 10 units of wine and Barbie's endowment were 8 units of quiche and 10 units of wine,then at any Pareto optimal allocation where both persons consume some of each good,

Suppose that in Problem 8,Mutt's utility function is U(m,j)=max{4m,j} and Jeff's utility function is U(m,j)= 2m + j.Mutt is initially endowed with 2 units of milk and 2 units of juice,and Jeff is initially endowed with 6 units of milk and 6 units of juice.If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box,then the set of Pareto optimal allocations includes the

In Problem 2,Astrid's utility function is U(H_A,C_A)=H_AC_A.Birger's utility function is min{H_B,C_B}.If Astrid's initial endowment is no cheese and 20 units of herring and if Birger's initial endowments are 4 units of cheese and no herring,then where p is a competitive equilibrium price of herring and cheese is the numeraire,demand equals supply in the herring market.This implies that

In Problem 3,Professor Nightsoil's utility function is U_N(B_N,P_N)=B_N +4p^1/2_N and Dean Interface's utility function is U_I(B_I,P_I)= B_I +p^1/2_I.If Nightsoil's initial endowment is 5 bromides and 10 platitudes and if Interface's initial endowment is 2 bromides and 10 platitudes,then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

An economy has two people,Charlie and Doris.There are two goods,apples and bananas.Charlie has an initial endowment of 3 apples and 4 bananas.Doris has an initial endowment of 6 apples and 2 bananas.Charlie's utility function is U(A_C,B_C)=A_CB_C,where A_C is his apple consumption and B_C is his banana consumption.Doris's utility function is U(A_D,B_D)=A_DB_D,where A_D and B_D are her apple and banana consumptions.At every Pareto optimal allocation,

In Problem 1,suppose that Morris has the utility function U(b,w)= 6b + 6w and Philip has the utility function U(b,w)=bw.If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box,then the contract curve contains

In Problem 4,Ken's utility function is U(Q_K,W_K)=Q_KW_K and Barbie's utility function is U(Q_B,W_B)=Q_BW_B.If Ken's initial endowment were 6 units of quiche and 9 units of wine and Barbie's endowment were 12 units of quiche and 9 units of wine,then at any Pareto optimal allocation where both persons consume some of each good,

In Problem 3,Professor Nightsoil's utility function is U_N(B_N,P_N)= B_N+4p^1/2_N and Dean Interface's utility function is U_I(B_I,P_I)=B_I + 2p^1/2_I.If Nightsoil's initial endowment is 4 bromides and 15 platitudes and if Interface's initial endowment is 7 bromides and 15 platitudes,then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

In Problem 3,Professor Nightsoil's utility function is U_N(B_N,P_N)=B_N +4p^1/2_N and Dean Interface's utility function is U_I(B_I,P_I)= B_I +2p^1/2_I.If Nightsoil's initial endowment is 3 bromides and 20 platitudes and if Interface's initial endowment is 5 bromides and 15 platitudes,then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

Suppose that in Problem 8,Mutt's utility function is U(m,j)= max{2m,j} and Jeff's utility function is U(m,j)=3m + j.Mutt is initially endowed with 6 units of milk and 2 units of juice,and Jeff is initially endowed with 2 units of milk and 6 units of juice.If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box,then the set of Pareto optimal allocations includes the

In Problem 1,suppose that Morris has the utility function U(b,w)=4b +4w and Philip has the utility function U(b,w)= bw.If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box,then the contract curve contains

In Problem 1,suppose that Morris has the utility function U(b,w)=5b+ 15w and Philip has the utility function U(b,w)= bw.If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box,then the contract curve contains