Suppose there are two consumers, A and B, and two goods, X and Y. ConsumerA’s utility function is given by:
UA(X,Y) = X1/3xY2/3,
And consumer B’s utility function is given by
UB(X,Y) = 4X + Y.
Suppose there is a total of 8 units of Good X and a total of 8 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.
