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Consider two agent5 twogood (denoted by X and Y) endowment economy with following details: The indirect utility functions over prices p: [p33, pg] and income
Consider two agent5 twogood (denoted by X and Y) endowment economy with following details: The indirect utility functions over prices p: [p33, pg] and income in and endowments are 109; (m) 1109; (Pm) (1 a} 10?; (Pit) log (in) (l a) 10?; (pm) (110?; (PS!) (2: 1} (132} v1{pm:py,m) U2px= 10mm) W1 W2 1. (10 pts) Show that the Marshallian Demand functions of the two agents for good Y are given by | | f-'\\ |_|. | S?! V y1(Pam) || 2: | y2(pam) 2. [10 pts) Use the about to calculate the market clearing prices for market Y. 3. [5pts) Explain [in two or three sentences) why at the above prices= the market for X must also clear
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