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Consider an exchange economy with two individuals with an identical utility function (1, 2 ) = 1^ 0.5 , 2^0.5 . person A has the

Consider an exchange economy with two individuals with an identical utility function (1, 2 ) = 1^ 0.5 , 2^0.5 . person A has the endowment (1,0) and person B (0,4). d. At what price does the market clear? e. In that case, what is the final allocation?

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