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Consider an exchange economy with 2 agents and 2 Goods
Both agents preferences are Lexicographic ( x over y)
endowment of A = (2,4)
endowment of B = (4,2)
Plot utility possibility frontier and set of all pareto efficient allocation.
Will the pareto efficient allocation be the endowment itself because B won't be willing to give up any x for more y?? And what will be the UPF?
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