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Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wi, w2 ) = (1, 2) and Bob's
Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wi, w2 ) = (1, 2) and Bob's endowment equals (wp, w2 ) = (1, 3). Alice's utility is given by uA (af , a2 ) = 2 In a4 + In a4, while Bob's utility is up (ap , 202 ) - In a + 2 In a2 . Find the competitive (Walrasian) equilibrium prices in this pure exchange economy. Select one: O a. p1 = 5, p2 = 3 O b. p1 = 3, p2 = 7 O c. p1 = 7, p2 = 3 O d. p1 = 1, p2 = 4
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