Below is an edgeworth box of two individuals, Ross and Rosa, in the consumption of two goods, X and Y 1. Consider allocations b-f (meaning points a, b, and f). Which allocations(s) A. are better for Ross than “a” (ignoring Rosa)? B. are better for Rosa than “a” (ignoring Ross)? C. are worse for both Ross and Rosa than “a”? D. are better for both Ross and Rosa than “a”? E. are Pareto superior to “a”? 2. Suppose that the initial allocation is point a between Ross and Rosa. A. Discuss how Ross’s condition be made better off without harming Rosa (i.e., Rosa maintains her level of utility). B. Illustrate this in a separate diagram and label point/s as necessary (also, if other point/s will have to be made or incorporated). 3. Consider once again that the initial allocation is point a. A. Discuss (very briefly) how point d is reached as a Pareto efficient allocation between Ross and Rosa. B. illustrate this condition in a separate diagram. 4. Consider points b, c, d, and e. Now plot the utility possibilities curve of Ross and Rosa. What do those points indicate?
Below is an edgeworth box of two individuals, Ross and Rosa, in the consumption of two goods, X and Y
1. Consider allocations b-f (meaning points a, b, and f). Which allocations(s)
A. are better for Ross than “a” (ignoring Rosa)?
B. are better for Rosa than “a” (ignoring Ross)?
C. are worse for both Ross and Rosa than “a”?
D. are better for both Ross and Rosa than “a”?
E. are Pareto superior to “a”?
2. Suppose that the initial allocation is point a between Ross and Rosa.
A. Discuss how Ross’s condition be made better off without harming Rosa
(i.e., Rosa maintains her level of utility).
B. Illustrate this in a separate diagram and label point/s as necessary (also,
if other point/s will have to be made or incorporated).
3. Consider once again that the initial allocation is point a. A. Discuss (very briefly) how point d is reached as a Pareto efficient
allocation between Ross and Rosa.
B. illustrate this condition in a separate diagram.
4. Consider points b, c, d, and e. Now plot the utility possibilities curve of Ross
and Rosa. What do those points indicate?
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