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A small exchange economy is comprised of two of individuals, A and B, and two types of goods, X, , X, . The individuals' preferences
A small exchange economy is comprised of two of individuals, A and B, and two types of goods, X, , X, . The individuals' preferences over two goods are can be represented by the following utility functions: U*(x,x, ) = min(2x],*2 ) and UP (x,X2 ) = min (x, 2x, ) . Initial endowments are 10 x, (individual A), and 10 x (individual B). Calculate the price ratio which yields an equilibrium in the exchange market
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