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3. Consider an exchange economy with two goods (1 and 2) and two consumers (A and B). A bundle with x units of good 1
3. Consider an exchange economy with two goods (1 and 2) and two consumers (A and B). A bundle with x units of good 1 and y units of good 2 is written as (x, y). Consumer A has an endowment (4, 0), and consumer B has an en- dowment (12, 12). The two goods are perfect substitutes for each consumer. Consider an allocation in which A receives (1,9) and B receives (15,3). If we can redistribute endowments suitably, it is possible to obtain this allocation as the outcome of a competitive equilibrium. Is this true or false? Explain carefully, using any relevant results from your course
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