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Hi, Can u help me solve this please? QUESTION 10 Lebron and Pau both consume the same goods, x and y. in a pure exchange
Hi, Can u help me solve this please?
QUESTION 10 Lebron and Pau both consume the same goods, x and y. in a pure exchange economy. Lebron is originally endowed with 40 units of good x and 70 units of good y. Pau is originally endowed with 50 units of good x and 50 units of good y. They both have the Cobb-Douglas utility function U(x, y) = xay W/3, If we le! good x be the numeraire, so that its price satisfies px = [1, then what will the equilibrium price of good y be? O a. E4. O b. E6. O c. None of the other answers is correct. O d.EBStep by Step Solution
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