Consider a two person two commodity pure exchange economy, Econometrics

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Consider a two person two commodity pure exchange economy

Consider a two person, two commodity pure exchange economy, with:U q q,U q q q q qand q q q Derive the contract curve as an implicit function of q and q.

a) What condition on the coefficients and ß will ensure that the contract curve is a straight line?

b) Explain the basic tenets of Rawl's theory of justice.

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Econometrics: Consider a two person two commodity pure exchange economy

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Econometrics: Consider a two person two commodity pure exchange economy

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