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2. Consider an exchange economy, in which there are two goods. The rst good is indivisible, i.e. its quantity is described by an integer. Preferences

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2. Consider an exchange economy, in which there are two goods. The rst good is indivisible, i.e. its quantity is described by an integer. Preferences are such that each buyer is Willing to purchase at most one unit of the indivisible good, and endowments are such that each seller is able to supply at most one unit of this good. There is also a perfectly divisible medium of exchange between traders called money. Preferences are additively separable in money and the indivisible good. Assume that each buyer's initial money holdings are large enough that (s)he is always able to afford a unit, if (s)he so desires. There are M potential buyers and N potential sellers

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