Consider Trade Between Two Consumers (1 and 2)and Two Goods,X

question 91

Essay

Consider trade between two consumers (1 and 2)and two goods,X and Y.Suppose the total quantities of each good are 100 units.Each consumer has Cobb-Douglas preferences given by:
U(X,Y)= XY
What is the shape of the contract curve,i.e.derive the equation? How does the contract curve change is consumer one has the utility function
U(X,Y)= X²Y
while the other consumer's preferences are as before? Again,derive the equation for the contract curve.

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Definitions:

Pacifism

The belief in the avoidance of war or violence as a means of resolving disputes or achieving social or political goals.

Intimidation

The act of frightening or coercing someone into doing or not doing something.

Scapegoat Theory

A theory suggesting that individuals may project their personal failures or problems onto a specific group or individual unfairly blamed for them.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over others, leading to prejudice and discrimination.