Doubts

Posted by Rautparul on Jan 20, 2017; 9:09am
URL: http://discussion-forum.276.s1.nabble.com/Doubts-tp7603095.html

Hi..  I am stuck with this question. Can anybody explain what is happening?

Consider a two-person two-good exchange economy, where
agents are denoted by A, B and goods are denoted by X, Y . A Pareto optimal
allocation of this economy may not remain Pareto optimal if

(a) Everything else remaining the same, Agent A transfers a part of her
endowment to Agent B
(b) Everything else remaining the same, Agent A gets additional endowment
(c) Everything else remaining the same, Agent A's utility function is monotonically transformed
(d) All of the above

Also, what is the idea behind Pareto optimal and equilibrium price? How are they different to each other?