In a Pure Exchange Economy, Ollie's Utility Function Is U(x

question 10

Essay

In a pure exchange economy, Ollie's utility function is U(x, y)= 3x + y and Fawn's utility function is U(x, y)= xy.Ollie's initial allocation is 1 x and no y's.Fawn's initial allocation is no x's and 2 y's.Draw an Edgeworth box for Fawn and Ollie.Put x on the horizontal axis and y on the vertical axis.Measure goods for Ollie from the lower left and goods for Fawn from the upper right.Mark the initial allocation with the letter W.The locus of Pareto optimal points consists of two line segments.Describe these line segments in words or formulas and show them on your graph.

---

Definitions:

Cultural Elite

The cultural elite are members of society who possess high levels of cultural capital, such as knowledge, education, and tastes, and often influence cultural trends and values.

Fashion Revue

Fashion revue is an event or showcase where designers or participants display clothing and accessories, often intended to highlight current trends or individual style.

Trial Ability

The extent to which a consumer can experiment with or test out a new product or service before making a purchasing decision.

Adoption

The act of beginning to use, implement, or support something new, such as a technology, idea, or product.