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Pareto efficency for perfect substitutes
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nikhita13
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Pareto efficency for perfect substitutes
Consider the following data:
u1(x1,y1)=2x1+y1, ω1=(0,1)
u2(x2,y2)=x2+2y2, ω2=(1,0)
How much will individual 1 consume in a Pareto efficient allocation that offers individual 1 a satisfaction level of u1=2.5?
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