|
|
Has anyone done question 5 - There are two goods x and y. Individual A has endowments of 25 units
of good x and 15 units of good y. Individual B has endowments of 15
units of good x and 30 units of good y. The price of good y is Re. 1,
no matter whether the individual buys or sells the good. The price of
good x is Re. 1 if the individual wishes to sell it. It is, however, Rs. 3 if
the individual wishes to buy it. Let Cx and Cy denote the consumption
of these goods. Suppose that individual B chooses to consume 20 units
of good x and individual A does not buy or sell any of the goods and
chooses to consume her endowment. Could A and B have the same
preferences?
|
Locked
