Question
Consider a consumer who owns an endowment ( 1 , 2 )=(2,3). The prices are( 1 , 2 ). The utility function is: ( 1
Consider a consumer who owns anendowment(1,2)=(2,3). The prices are(1,2).
The utility function is: (1,2)=12
Solve thedemand function
1(1,2)
(Note:is endogenously determined)
** Part b
Solve for theoffer curve.
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Energy, Foresight And Strategy
Authors: Thomas J Sargent
1st Edition
1317329686, 9781317329688
