A Social Planner allocates two goods X (20 units) and Y (10 units) between two consumers...

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Question

A Social Planner allocates two goods X (20 units) and Y (10 units) between two consumers...

A Social Planner allocates two goods X (20 units) and Y (10 units) between two consumers 1 and 2.

(a) What is the efficiency condition?

(b) If consumers 1 and 2 have the utility function U=10.X^.4Y^.6, and U=10.X^.6Y^.4 respectively, what is the efficient allocation?

(c) Instead of the social planner allocating goods, a competitive market exists. What is the price ratio of X and Y?

(d) If X has $50 and Y has $100, and price of Y is 1, how much of X and Y will be consumed by consumers 1 and 2?

business economics

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A Social Planner allocates two goods X (20 units) and Y (10 units) between two consumers...

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