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Consider an exchange economy with 2 consumers (A and B) and 2 goods (x 1 and x 2 ). Consumer A's utility function is given
Consider an exchange economy with 2 consumers (A and B) and 2 goods (x1and x2). Consumer A's utility function is given by
uA=x1+ax^1/2
where a is some constant, and Consumer B's utility function is given by
uB=x1+bx2
where b is some constant. Suppose that a=176 and b=9. At a Pareto optimal allocation in which both individuals consume some of each good, how much x2does Consumer A consume? (Answer up to 2 decimal places.)
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