2. Look at the country A only, suppose each worker has preferences U defined by: UA = Biln(CA) + B2ln(C4) where CA is the consumption level for product X and CA is the consumption level for product Y. Find the autarky equilibrium for economy A. (hint: following the three major steps on the handout) And then describe the equilibrium for economy A. (hint: Given ... exogenous parameters, ...endogenous variables are solved, if ... conditions are satisfied.) a = 1; a = 5; a = 10; a = 10 Step 1. Pin down the price matrix (systems), aka. autarkic relative price ratio. - Step 2. Pin down wages, set the numeraire. Step 3. since we pin down the production side, we now can solve for the standard consumer's prob- lem, given prices, and wages. 1.cc