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Let U_A = 2x_{1A} + x_{2A}, U_B = 2 x_{1B} + 3 x_{2B}, e_A = (1,1), e_B = (9,1). Knowing that both goods are indivisible
Let U_A = 2x_{1A} + x_{2A}, U_B = 2 x_{1B} + 3 x_{2B}, e_A = (1,1), e_B = (9,1). Knowing that both goods are indivisible and the utility function are strictly increasing in both goods, argue that this economy doesn't admits a competitive equilibrium
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
