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1. Suppose there are two consumers, A and B. 1. Suppose there are two consumers, A and B. The utility functions of each consumer are
1. Suppose there are two consumers, A and B. The utility functions of each consumer are given by: = X*Y3e Therefore:e For consumer A: MUX For consumer B: MUX The initial endowments are: = Y; MUY = X = Y3; MUY = 3XY2 points) Suppose the price of Y, PY = 1. competitive equilibrium. Calculate the price of X, Px that will lead to a
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Essentials Of Advanced Macroeconomic Theory
Authors: Ola Olsson ]
1st Edition
9780415685085
