Amit sir plz help...

Posted by Sumit on Jun 09, 2013; 5:54pm
URL: http://discussion-forum.276.s1.nabble.com/Amit-sir-plz-help-tp7582070.html

situation:An exchange economy is populated by three consumers: 1, 2, and 3. There are two goods—good x and good y. The consumers’ preferences are characterized (respectively) by
the three utility functions: u(1) = min{x, y}, u(2) = 2log(x) + y, u(3) = x + 2y
Total endowment of good x and y in the economy is 10 units each.


q1)Which of the following allocations is pareto efficient?
a)((1, 1), (1, 0), (8, 9))
b)((4, 4), (1, 2), (5, 4))
c) ((2, 2), (8, 0), (0, 8))
d)((1, 1), (0, 1), (9, 8))

q2)
Suppose the endowment is the pareto efficient allocation of the problem above. Then competitive equilibrium prices are
 a) (1, 1)
 b)(1, 3)
 c)(1, 4)
  d)None of the above


Sir plz tell how to go about Q2...


N the second part of trade question in the following  link....

http://discussion-forum.2150183.n2.nabble.com/TRADE-tp7580461.html