Elizabeth Swann and her husband consume wine (W) and books (B). Elizabeth's utility function is UE(W, B) = W. Her husband's utility function is UH(W, B) = W. Elizabeth endowment is 16 bottles of wine and 5 books and her husband's endowment is 19 bottles of wine and 14 books. In the Edgeworth box, Elizabeth's consumption is measured from the lower left corner, and her husband's from the upper right corner of the box; the wine is on the horizontal axis and books are the vertical axis.

Elizabeth Swann and her husband consume wine (W) and books (B). Elizabeth's utility function is UE(W, B) = W. Her husband's utility function is UH(W, B) = W. Elizabeth endowment is 16 bottles of wine and 5 books and her husband's endowment is 19 bottles of wine and 14 books. In the Edgeworth box, Elizabeth's consumption is measured from the lower left corner, and her husband's from the upper right corner of the box; the wine is on the horizontal axis and books are the vertical axis.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 19SQ

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