Suppose both julien and mohsen see burgers and bowls of pasta to be imperfect substitutes characterized by convex indifference curves. Julien currently has 1 pancake and 4 bowls of pasta and mohsen has 7 burgers and 6 bowls of pasta. At this allocation, Julien's marginal utility is 20 for burgers and 5 for pasta, and Mohsen's marginal utility is 6 for burgers and 18 for pasta.
True or False: Julien and Mohsen would both be better off if Julien gave Mohsen 2 bowls of pasta in exchange for 1 pancake. With the use of a diagram, explain your answer.
Answer:-
there is a correction in the question instead of pancake there should be one burger
True, julien and mohsen would both be better off if julien gave mohsen 2 bowls of pasta in exchange for 1 burger
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