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SHOW YOUR WORK in detailes v I Consider a two-consumer, two-commodity (pure-exchange) economy. Assume the endowment of consumer A is wA = (1, 2)
SHOW YOUR WORK in detailes
v \\ I Consider a two-consumer, two-commodity (pure-exchange) economy. Assume the endowment of consumer A is wA = (1, 2) and the endowment of consumer B is (4.13 = (1,0). The utility function of consumer A is uA(a:) = max{:c1, 11:2} and the utility function of consumer B is 1139(3) = 3:1 l 11:2. Does this economy have a competitive equilibrium? If yes, find a competitive equilibrium. If no, explain. Show your work. [Note.' In your answer, you can use Edgeworth box. In your answer, be careful with the budget sets.]Step by Step Solution
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