Suppose Vijay has 10 onion rings and 5 sheek kababs, and his friend Tara has 5onion rings and 10 sheek kababs. Both can benefit from trade, and after trading Vijay has 12onion rings and 3 sheek kababs. In an Edgeworth box, label the initial allocation A and the newallocation B. Draw indifference curves that are consistent with this trade being optimal for bothVijay and Tara. Put sheek kababs on vertical axis and onion rings on horizontal axis. Put Vijayon the southwest corner and Tara on northeast corner.

An indifference curve represents a combination of two things that give the consumer with the same…

Suppose Vijay has 10 onion rings and 5 sheek kababs, and his friend Tara has 5 and 10 sheek kababs. Both can benefit from trade, and after trading Vijay has 12 nd 3 sheek kababs. In an Edgeworth box, label the initial allocation A and the new Draw indifference curves that are consistent with this trade being optimal for both ra. Put sheek kababs on vertical axis and onion rings on horizontal axis. Put Vijay vest corner and Tara on northeast corner

Suppose Vijay has 10 onion rings and 5 sheek kababs, and his friend Tara has 5 and 10 sheek kababs. Both can benefit from trade, and after trading Vijay has 12 nd 3 sheek kababs. In an Edgeworth box, label the initial allocation A and the new Draw indifference curves that are consistent with this trade being optimal for both ra. Put sheek kababs on vertical axis and onion rings on horizontal axis. Put Vijay vest corner and Tara on northeast corner

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.11P

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