Question

2. (14 total points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer

A's utility function is given by:

UA(X,Y)= X¹/4*Y3/4

And consumer B's utility function is given by

UB(X,Y)= 3X + Y.

Suppose there is a total of 18 units of Good X and a total of 9 units of Good Y. Using an Edgeworth Box,

Illustrate the contract curve. Be sure that the dimensions of the Edgeworth Box are correct, and that the

Edgeworth Box is fully and accurately labeled.

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