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Find the equilibrium price ratio and allocations for the following utility functions and endowments UA(x,y) =2x+y UB(x, y)=2x+5y e4 = 100, e4 = 100,
Find the equilibrium price ratio and allocations for the following utility functions and endowments UA(x,y) =2x+y UB(x, y)=2x+5y e4 = 100, e4 = 100, B = 100, eB = 100 (hint: each consumer will only consume one type of good in equilibrium. Why? Can you guess which good each consumer will consume?) UA (x, y) = x/2y1/2 UB(x, y) = x/43/4 UC (x, y) = x/4y/4 ec c = 100, e4 = 100, c = 100, e = 100, c = 100, eg = 100 e (hint: There are three consumers in this economy, but the same definitions hold. All consumers must be maximizing utility and markets must clear.)
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