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In an exchange economy, there are two people, A and B, and two goods, I and y. The utility functions of A and B are
In an exchange economy, there are two people, A and B, and two goods, I and y. The utility functions of A and B are given by u;=x,y; for 1' =A, B. Person A starts with 72000 units of x and zero units of y. Person B starts with zero units of x and 8.000 units of y. If the price of good y is 1, what is the competitive equilibrium of good x
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