Question
Amanda and Boris both consume the same goods in a pure exchange economy. Amanda is originally endowed with 9 units of good x and 6
Amanda and Boris both consume the same goods in a pure exchange economy. Amanda is originally endowed with 9 units of good x and 6 units of good y. Boris is originally endowed with 18 units of good x and 3 units of good y. They both have the same utility function with respect to their own consumptions:
Ui(xi,yi)=xi1/3 yi1/3 where i=A,B and A indicates Amanda, B indicates Boris.
Let price of good y be $6.
The market clearing price of good x at the competitive equilibrium is ??? .
In the competitive equilibrium, Amanda consumes ??? units of x.
In the competitive equilibrium, Boris consumes ??? units of y.
In the competitive equilibrium, the value of Boris's endowment is ??? .
The equation for the contract curve is axA=bxB. The value of a is ??? and b is ??? .
In the competitive equilibrium, the net demand for good x for Boris is ??? .
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