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5) Consider a two-Person general equilibrium with two agents A and 13 Agent A's utility function is ? UA ( xA , x 2 )
5) Consider a two-Person general equilibrium with two agents A and 13 Agent A's utility function is ? UA ( xA , x 2 ) = log ( xi ) + log ( x2 ) Agent B's utility function is: UB ( x 3 , x 13, ) = 2 log Xi + x 3 The endowments are: 2 ( Wi , WA ), ( WS, W 2 ) ; = E CI, 27, ( 1, 2)3 Denote the relative price by pro. 1 Find the demands of good I of Person At and B given an arbitrary relative p 2 . using the market clearing condition for good I, find the competitive equilibrium price p soive for the contract curve in terms of ( xi , x 2 )
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