Question

Suppose both julien and mohsen see burgers and bowls of pasta to be imperfect substitutes characterized...

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.

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Answer #1

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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