Suppose there are only two individuals A and B in the economy with utility function of first individual given as U(A) = In(x1) +y12, and utility function of second person given as, U(B) = x2^0.5 + In(y2). Which of the following provides for the equation of contract curve. In(x1) +y12 = x2^0.5 +In(y2) x1/x2 = yl/y2 yl/y2 = x^20.5/x1 x2^0.5/2 x1 = y2/y1 Next

Suppose there are only two individuals A and B in the economy with utility function of first individual given as U(A) = In(x1) +y12, and utility function of second person given as, U(B) = x2^0.5 + In(y2). Which of the following provides for the equation of contract curve. In(x1) +y12 = x2^0.5 +In(y2) x1/x2 = yl/y2 yl/y2 = x^20.5/x1 x2^0.5/2 x1 = y2/y1 Next

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose there are only two individuals A and B in the economy with utility function of first individual given as U(A) = In(x1) + y12, and utility function of second person given as, U(B) = x2^0.5 + In(y2). Which of the following provides for the equation of contract curve. In(x1) + y12 = x2^0.5 + In(y2) yl/y2 = x^20.5/x1 x2^0.5/2 x1 = y2/y1 x1/x2 = y1/y2
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