There is an economy which has 2 individuals, 2 goods, 2 inputs. If production side is...

There is an economy which has 2 individuals, 2 goods, 2 inputs. If production side is at the equilibrium but consumption side not at the equilibrium, can you describe with functions whether or not this economy will reach Pareto efficient equilibrium? Explain process of reaching equilibrium with graphically.

(please work on this, if you have enough knowledge about topic !!!! )

please not saying reference. whole question is there. construct the model then solve it.

Expert Solution

Rahul Sunny answered 11 months ago

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