I need help with this home work problem. Question 1.The utility functions of each consumer are given by:UA(X,Y)= X¹/2*y1/2UB(X,Y)=X+YThe initial endowments are:A: X = 8; Y = 3B: X = 4; Y = 5Suppose there are two consumers, A and B.a) Using an Edgeworth Box, graph the initial allocation (label it "W") and draw the indifference curve foreach consumer that runs through the initial allocation. Be sure to label your graph carefully andaccurately.

Edgeworth box, is used in microeconomics to examine the exchange of goods between two individuals.…

Answered: Question 1. The utility functions of…

Question 1. The utility functions of each consumer are given by: UA(X,Y)= X¹/2*y1/2 UB(X,Y)=X+Y Suppose there are two consumers, A and B. The initial endowments are:

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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