Home / Questions / Popeye and Wimpy trade only with each other. Popeye has 8 hamburgers and 2 cans of spinach...
Popeye and Wimpy trade only with each other. Popeye has 8 hamburgers and 2 cans of spinach, and Wimpy has 2 hamburgers and 8 cans of spinach. Their indifference, somewhat unusually, are all straight lines, Popeye s being much steeper than Wimpy s: In an Edgeworth box, show the initial endowment, the region of mutual advantage, the contract curve, and the competitiveequilibrium.
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