1.

1) U =
1n(X , ) + In (x4) ,
n =
A B
,

MRS = OU/OX du = 1

8X , X4
DU/0X2 I

X
or 1
; h A
= = =

dXz x ,

MRSA
X MRSB
. = = #
,

1 2) Pareto eff allocation ; 1 MRSA MRSB

X X
= >
- =
.
. .

2 .
X
,
+ X
B
,
=
, = 2

.
3 Xt x B + =

Ez =
3

5
1 3) from 1 2).

; X, + X
B =
2 =
X
B = 2 -X ,
,
.

XB
+ B
X X2 =
3 >
- =
3 -

X
contract curve ; = x
X ,B

A *
Xz = 3-X
A
XA 2 X
-

CX2-X
A
,
X, =
3X
A -
X , X,
,

A A
2X =
3X ,
,

XA
A

3 X,
=

3 OB

contract curve

3/2

- I
 A B
X
,
+
X, =
1

X B
XA +
2 =
1

2
2 1) WA(X ,1 X(f) =
(X ,1)(X,f) UB(X ,B X B) =
(X ,3)(X,
>
.

, ,

MRSA = UF/OX , MRSB = OVP/dX ,

OVA/OXA DUB/OX
*

MRSA = Xct MRSB = (XcB)2 = XeB

A B
X,
2X , * XB 2X ,

contract curve
;
MRSA =
MRSB
B
XzA - X
B
B
X 2X ,
,

XA = 1-Xet
B
X 2(1 X,t)
-

2XA-2XX =
X
,
-

X , XA
*
X A
,
=
2 X, -

XXA
X, A =
(2-X , ) XA

2 .
2) 1 .

Xt = <
7/2 =
1/2 12 Pareto eff allocation .
.

2/3 2/3

XA
B
2 .
+
x
,
=
E =
1

IW Pareto eff allocation

= 5
+ =1 .
.

B
.
3
x +
X
=

Ec =
1

IW Pareto eff allocation

& 1
= .
.
 +
x +
XB =
2

yA + yB =
2

(XA) (YA) 2(XBj1k (yB) 2

2
UA 2
UB

I
3 .
1) = =

*
MRSA =
&H /OXA MRSB = DUB/OXB
DUA/DyA DUB/GYB

z(yB)1k
-

= E(XA) 2(yAj/2 =
(B)
1/2 (XB) 1/2 (yB) 1/2
E(XA)
-

2
(ya)

B
MRSA = YA MRSB = Y

&
A
XB

contract curve MRSA = MRSB

;
YA = YB
XA XB

YA I 2 -

YA
XA 2 -
XA

2YA -
2XA
yA =
XA

3 . 2) UA =
(XA) 2 (yA)"2 =
(X
*
) 12 (XA)' =
XA
UB 2(XB) 2(yB) 2(XB) &
2
(X B)
2
2X
=
= =

UPF from X1 XB
*
; 2X
+ =
2 >
- =

B =
2(2 -

XA)
UB =
4-2UA

. 3)
3 W =

VAUB UPF ;
UB =
4-ZUA ... UPF UB =
4-LUA
;
slope SWF = - UB
Slope UPF =
-

2 2UA =
4- LUA
,

UA WA =
1

slope SWF =

slope UPF and UB =

2

-
VB = -

2
UA
social optimum (UA UB) = (1 2)
, ,

UB =
LUA