1. Competitive Equilibrium (15 points) Jason has a utility function of uj (c1, C2) = In(c1) + 5 In(c2). Tahani has a utility function of
1. Competitive Equilibrium (15 points) Jason has a utility function of uj (c1, C2) = In(c1) + 5 In(c2). Tahani has a utility function of ur (c1, C2) = min {c1, C2} . The endowments are eJ = (1,2) and eT = ( 2, 1 ) . a. Define the competitive equilibrium for this economy. (5 points) b. Calculate the market clearing prices and the equilibrium allocation. (10 points)
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