Find the Walrasian Equilibrium price and allocations for all the economies : (1) Utilities are u1(x1,x2)...
Find the Walrasian Equilibrium price and allocations for all the economies :
(1) Utilities are u1(x1,x2) = min(x1,x2), u2(x1,x2) = min(x1,x2). The endowment is e1 = (5,6) and e2 = (15,4)
(2) Utilities are u1(x1,x2) = max(x1,x2), u2(x1,x2) = min(x1,x2). The endowment is e1 = (5,6) and e2 = (15,4)
Homework Answers
At CE allocation, the budget constraint should pass from the initial endowment, & must be tangent to IC , should not cut the IC
So only parallel BC is possible,where P1 = 0, as slope of budget constraint is P1/P2 ,
B)
Edgeworth box dimensions are 20× 10
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Find the Walrasian Equilibrium price and allocations for all the
economies :
(1) Utilities are u1(x1,x2)...
2. For the following economies find the set of all efficient allocations: (a) Preferences are u'(x1, x2) = min{x\,...
2. For the following economies find the set of all efficient allocations: (a) Preferences are u'(x1, x2) = min{x\, x2}, u2(x1, 2) = min{x1,X2}. Endowments are i. e! %3D (3,6), е? ii. et %3D (5, 7), е? %3 (15, 3); ii. e' %3D (5, 7), е? %3D (25, 3). (b) As in part (a), but u'(r\, x2) = max{x1, x2} (7,4); 3. Find the Walrasian Equilibrium price(s) and allocations for all the economies in Question 1 and 2
2. For...
This Problem is from "Advanced Microeconomic Theory – Geoffrey Jehle, Philip Reny" 5.12 There are two...
This Problem is from "Advanced Microeconomic Theory – Geoffrey Jehle, Philip Reny" 5.12 There are two goods and two consumers. Preferences and endowments are described by u1(x1, x2) = min(x1, x2) and e1 = (30, 0), v2(p, y) = y/2 √ p1p2 and e2 = (0, 20), respectively. (a) Find a Walrasian equilibrium for this economy and its associated WEA. (b) Do the same when 1’s endowment is e1 = (5, 0) and 2’s remains e2 = (0, 20).
1) Eoreach of tbe exchange economies described below, draw the set of Pareto efficient allocations. a)...
1) Eoreach of tbe exchange economies described below, draw the set of Pareto efficient allocations. a) ya(x)-X1X2, wa= (1,0), ua(x) = X1,X2, we= (0,1) c) d) ua(x)-X1+4X2, WA= (2,2), ua(x)-X1X2, wa= (2,2) Ma(x)-min(x1,x2), WA: (3,3), min(x1,x2), w (2,2)
The angle between two vectors u1=x1i+y1j+z1k and u2=x2i+y2j+z2k can be determined by cos()=(x1*x2+y1*y2+z1*z2)/(|u1|*|u2|), were |u1|=sqrt(x1^2+y1^2+z1^1). Given...
The angle between two vectors u1=x1i+y1j+z1k and u2=x2i+y2j+z2k can be determined by cos()=(x1*x2+y1*y2+z1*z2)/(|u1|*|u2|), were |u1|=sqrt(x1^2+y1^2+z1^1). Given the vectors u1=3.2i-6.8j+9k and u2=-4i+2j+7k, determine the angle between them (in degrees) by writing one MATLAB command that uses element by element multiplication and the MATLAB built in functions acosd, sum, and sqrt. This is what I tried but i don't think it's correct because it should be one value and I got a vector u1=[3.2 -6.8 9] u2=[-4 2 7] theta=acosd(sum(u1.*u2)./sqrt(u1).*sqrt(u2)).
NOTE: It is a General Equilibrium (GE) question. Please answer all parts of the question. Thanks ...
NOTE: It is a General Equilibrium (GE) question. Please answer
all parts of the question. Thanks for the help.
Ш. Consider the two-person, two-good economy given by 띠 (x) = 2011 + x12, wi and u2(x2)2+222 , w- where u讠 : R → R+, xi :-(zil, Xi2), and wi := (wil ,Wi2), i = 1, 2, are person i's utility function, consumption bundle, and endowment of the two goods, respeortively. 1. Find the set of competitive equilibrium allocations and corresponding...
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function....
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function. 2. For each of the three utility functions below, find the substitution effect, the income effect, and the total effect that result when prices change from p =(2, 1) to p' = (2,4). Assume the consumer has income I = 20. (a) Before doing any calculation, make an educated guess about the relative magnitude of the three substitution effects and the three income effects...
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function....
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function. 2. For each of the three utility functions below, find the substitution effect, the income effect, and the total effect that result when prices change from p = (2,1) to p' = (2,4). Assume the consumer has income I = 20. (a) Before doing any calculation, make an educated guess about the relative magnitude of the three substitution effects and the three income effects...
1) Endowments and utility functions are: e 1 = (10, 50) , u1 (C, W) =...
1) Endowments and utility functions are: e 1 = (10, 50) , u1 (C, W) = C 1/2W1/2 e 2 = (80, 10) , u2 (C, W) = C 1/2W1/2 2) Endowments and utility functions are: e 1 = (30, 24) , u1 (C, W) = C 1/2W1/2 e 2 = (60, 36) , u2 (C, W) = C 1/2W1/2 1 3) Endowments and utility functions are: e 1 = (30, 24) , u1 (C, W) = C 1/3W2/3 e...
What are the marginal utilities of x1 and x2 given the following utility functions, then find...
What are the marginal utilities of x1 and x2 given the following utility functions, then find the MRS: U(x1, x2) = 4 x1 + 8 x2 U(x1, x2) = (x1 + 2)(x2 + 1) Example. To find the marginal utility for x1, think about how a 1 unit increase in x1, keeping all else constant, will change the amount of utility U. Once you have the marginal utilities for both, you can calculate the MRS.
you need to answer Q6-Q10. which part of the questio is not clear? Question (1): Find...
you
need to answer Q6-Q10. which part of the questio is not
clear?
Question (1): Find the Walrasian equilibria for each of the following pure exchange economies with 2 goods and 2 consumers. 6. ^(x,y) = min{x,y}; u(x,y) = min{2x, y}; endowment (5,5), (5,5)) 7. u^(x, y) = x + Vy; u(x, y) - 8x + y; endowment ((2, 2), (8, 8)) 8. 2^(x,y) = + Vý; uB(, y) = 8x + y; endowment ((8,8), (2, 2). 9. ^(x,y) =...
2. For the following economies find the set of all efficient allocations: (a) Preferences are u'(x1, x2) = min{x\, x2}, u2(x1, 2) = min{x1,X2}. Endowments are i. e! %3D (3,6), е? ii. et %3D (5, 7), е? %3 (15, 3); ii. e' %3D (5, 7), е? %3D (25, 3). (b) As in part (a), but u'(r\, x2) = max{x1, x2} (7,4); 3. Find the Walrasian Equilibrium price(s) and allocations for all the economies in Question 1 and 2
2. For...
1) Eoreach of tbe exchange economies described below, draw the set of Pareto efficient allocations. a) ya(x)-X1X2, wa= (1,0), ua(x) = X1,X2, we= (0,1) c) d) ua(x)-X1+4X2, WA= (2,2), ua(x)-X1X2, wa= (2,2) Ma(x)-min(x1,x2), WA: (3,3), min(x1,x2), w (2,2)
NOTE: It is a General Equilibrium (GE) question. Please answer
all parts of the question. Thanks for the help.
Ш. Consider the two-person, two-good economy given by 띠 (x) = 2011 + x12, wi and u2(x2)2+222 , w- where u讠 : R → R+, xi :-(zil, Xi2), and wi := (wil ,Wi2), i = 1, 2, are person i's utility function, consumption bundle, and endowment of the two goods, respeortively. 1. Find the set of competitive equilibrium allocations and corresponding...
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function. 2. For each of the three utility functions below, find the substitution effect, the income effect, and the total effect that result when prices change from p =(2, 1) to p' = (2,4). Assume the consumer has income I = 20. (a) Before doing any calculation, make an educated guess about the relative magnitude of the three substitution effects and the three income effects...
1. Consider the utility function: u(x1,x2) = x1 + x2. Find the corresponding Hicksian demand function. 2. For each of the three utility functions below, find the substitution effect, the income effect, and the total effect that result when prices change from p = (2,1) to p' = (2,4). Assume the consumer has income I = 20. (a) Before doing any calculation, make an educated guess about the relative magnitude of the three substitution effects and the three income effects...
you
need to answer Q6-Q10. which part of the questio is not
clear?
Question (1): Find the Walrasian equilibria for each of the following pure exchange economies with 2 goods and 2 consumers. 6. ^(x,y) = min{x,y}; u(x,y) = min{2x, y}; endowment (5,5), (5,5)) 7. u^(x, y) = x + Vy; u(x, y) - 8x + y; endowment ((2, 2), (8, 8)) 8. 2^(x,y) = + Vý; uB(, y) = 8x + y; endowment ((8,8), (2, 2). 9. ^(x,y) =...
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