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4- {5 points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of
4- {5 points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 6 units of good X and 1 units of good Y. Consumer B is given an initial endowment of 2 units of good X and 7' units of good Y. Consumer Al's 'IJlilltj.' function is given by: UA(X:Y) = Xl'Y; And consumer B's utility function is given by UBOQY) = X*Y'3_ Therefore, consumer A*s marginal utilities for each good are given by: MUX=Y MUY=X Also, consumer B's marginal utilities for each good are given by: INJUX=Y3 I'v'.'[Uer=3X']:'2 Suppose the price of good Y is equal to one. Calculate the price of good X that will lead to a competitive equilibrium. PX
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