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Chris and Dana live in an exchange economy with two goods: good Q and good R. Chris starts off with an endowment of 6 units
Chris and Dana live in an exchange economy with two goods: good Q and good R. Chris starts off with an endowment of 6 units of Q and 10 units of R. Dana starts off with an endowment of 8 units of Q and 8 units of R.\
Suppose that the price of good R is pR=1 and the price of good Q is pQ=2. 1) At these prices, does the market clear? yes or no, explain
What relationship must hold between the consumption of each agent and the price of the two goods at the market clearing equilibrium? Write the equation
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