There are two individuals A and B and two goods X and Y. The utility functions
of A and B are given by UAXA and UB = X2B + Y2B
respectively where Xi ,Yi are consumption levels of the two goods by individual i, i = A, B.
(a) Draw the indifference curves of A and B.
(b) Suppose A is endowed with 10 units of Y and B with 10 units of X.
Indicate the endowment point in a box diagram.
(c) Draw the set of Pareto optimal allocation points in the box diagram.

Question

There are two individuals A and B and two goods X and Y. The utility functions
of A and B are given by UAXA and UB = X2B  +  Y2B  
respectively where  Xi ,Yi are consumption levels of the two goods by individual i, i = A, B.
(a) Draw the indifference curves of A and B.
(b) Suppose A is endowed with 10 units of Y and B with 10 units of X.
Indicate the endowment point in a box diagram.
(c) Draw the set of Pareto optimal allocation points in the box diagram.