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Q2. Suppose we have two individuals with utility functions: UA(x 1,X42) = XAItxAL UB(x 1,X 2) = X Itx2 (a) Show that in equilibrium the

Q2. Suppose we have two individuals with utility functions: UA(x 1,X42) = XAItxAL UB(x 1,X 2) = X Itx2 (a) Show that in equilibrium the price ratio must be equal to 1 (b) Show that any allocation is an equilibrium allocation

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