EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 10, Problem 10.7P
a)
To determine
To calculate: Utility of each sailor.
b)
To determine
To calculate: Food allocation which would yield same utility to both sails.
c)
To determine
Allocation at which the sum of utilities is maximum, but the 2nd sailor receives at least a utility of 5.
d)
To determine
To discuss: Other criteria for allocation.
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Come up with an example with four agents and four items in which there is only one Pareto efficient allocation
Suppose there are two consumers, A and B. There are two goods, X and Y.
There is a TOTAL of 8 units of X and a TOTAL of 8 units of Y. The
consumers' utility functions are given by:
UA(X,Y) = 2X + Y
UB(X,Y) = X*Y2
Which of the following allocations is Pareto Efficient?
None of the other answers are Pareto Efficient.
Consumer A gets 3 units of X and 8 units of Y, and Consumer B gets 5 units of X
and O units of Y.
Consumer A gets 4 units of X and 4 units of Y, and Consumer B gets 4 units of X
and 4 units of Y.
Consumer A gets 1 units of X and 4 units of Y, and Consumer B gets 7 units of X
and 4 units of Y.
Consumer A gets 8 units of X and 8 units of Y, and Consumer B gets 0 units of X
and O units of Y.
Consider a two-person exchange economy in which person 1 owns 200 units of x and 100 units of y while person 2 owns 100 units of x and 200 units y. Suppose their preferences over the two goods can be represented as:
U1 (x, y) = y + 50Inx
U2 (x, y) = y + 150lnx
1. How much of x do they trade among each other?
2. Does the First Welfare Theorem (FWT) hold in this economy?
Chapter 10 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 10.2 - Prob. 1MQCh. 10.4 - Prob. 1MQCh. 10.4 - Prob. 2MQCh. 10.4 - Prob. 1.1MQCh. 10.5 - Prob. 1TTACh. 10.5 - Prob. 2TTACh. 10.7 - Prob. 1MQCh. 10.7 - Prob. 2MQCh. 10.7 - Prob. 3MQCh. 10.8 - Prob. 1TTA
Ch. 10.8 - Prob. 2TTACh. 10.8 - Prob. 1MQCh. 10.8 - Prob. 2MQCh. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQCh. 10 - Prob. 10.1PCh. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Prob. 10.5PCh. 10 - Prob. 10.6PCh. 10 - Prob. 10.7PCh. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Prob. 10.10P
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