1. Suppose there are two consumers, A and B. The utility functions of each consumer are given...

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1. Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA ( X, Y) = XY U=(X, Y) = X*Y3 Therefore: For consumer A: MUx = Y; MUy = X For consumer B: MUx = Y' ; MUy = 3XY2 The initial endowments are: A: X = 6; Y = 7 B: X = 14; Y = 13 a) (40 points) Suppose the price of Y, Py = 1. Calculate the price of X, Px that will lead to a competitive equilibrium

Posted Date: Jun 21, 2024 03:11 PM

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1. Suppose there are two consumers, A and B. The utility functions of each consumer are given...

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