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Posted: June 10th, 2020

isolated valley and trade, economics homework help

Question description

Sheila and Ivan live in an isolated valley and trade with no one but each other. They consume only apples and oranges. Sheila has an initial endowment of 6 apples and 19 oranges. Ivan has an initial endowment of 18 apples and 20 oranges. For Sheila, the two goods are perfect substitutes, one for one. For Ivan, they are perfect complements, one for one. At all Pareto efficient allocations, I know the answer is 15 for sheila someone give a step by step as to how?

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