Ken and Daniel always eat miso soup and sushi in exact proportions: Ken eats one miso per two sushi; Daniel eats two miso per one sushi. They throw away any extra soup or sushi as it would not give them any pleasure. Once, they were stuck in the office together for hours, marking students’ assignments. Ken had ten miso soups and two sushi with him; Daniel had two miso and ten sushi. (For the purpose of this question, assume that miso and sushi can be divided into little pieces so one-half miso or one-hundredth of sushi makes sense) a) Draw the Edgeworth box for Ken and Daniel. Please put Ken at the origin and Daniel “upside down”; put miso on the horizontal axis and sushi on the vertical one. Show their endowment point

Ken and Daniel always eat miso soup and sushi in exact proportions: Ken eats one miso per two sushi; Daniel eats two miso per one sushi. They throw away any extra soup or sushi as it would not give them any pleasure. Once, they were stuck in the office together for hours, marking students’ assignments. Ken had ten miso soups and two sushi with him; Daniel had two miso and ten sushi. (For the purpose of this question, assume that miso and sushi can be divided into little pieces so one-half miso or one-hundredth of sushi makes sense) a) Draw the Edgeworth box for Ken and Daniel. Please put Ken at the origin and Daniel “upside down”; put miso on the horizontal axis and sushi on the vertical one. Show their endowment point

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 7SQ

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