What about Charlie\'s? b. What is the marginal utility of X for Juan given his c

Question

     What about Charlie's?

b. What is the marginal utility of X for Juan given his current holdings?

c. What is the marginal utility of X for Charlie given his current holdings?

d. Suppose Charlie wants to give 1/6 unit of X to Juan, and in exchange Juan would give Charlie 1/4 unit of Y.

    True or false? Charlie will be better off due to trade.
True/False?

    True or false? Juan be better off due to trade.
True/False?

    Will Juan and Charlie be willing to trade?

Explanation / Answer

1.) 2.Perfect substitutes

2.) 4.Perfect complements

3.) 2

4.) 0

5.) TRUE

6.) TRUE

7.) YES

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