Consider an exchange economy with two people, A and B, and two goods, 1 and 2. Each person has well-behaved preferences. Person A has an endowment of wA= (2,3) and person B has an endowment wB= (2,2). Say that the economy is at competitive equilibrium. The price per unit of good 2 is $1, and person A's consumption bundle is xA* = (3,1).

What is the price of good 1 in the equilibrium? How do you know? What is person B's bundle at the equilbrium? How do you know?

1. Consider an exchange economy with two people, A and B, and two goods, 1 and 2. Each person has wellbehaved preferences. Person A has an endowment MA = (2, 3) and person B has an endowment MB : (2, 2). Say that the economy is at. a competitive equilibrium. The price per unit of good 2 is $1, and person As consumption bundle is 1"}, : (3, l). a.) What. is the price of good 1 in the ecpiilibriurn? How do you know? What is person B's bundle in the equilibrium? How do you know