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ssume again A 1 = 10, B 1 = 20, A 2 = 20, B 2 = 10 and = 1/2, = 1/2. Do a
ssume again A 1 = 10, B 1 = 20, A 2 = 20, B 2 = 10 and = 1/2, = 1/2. Do a qualitative plot of the offer curve for consumer 1. [The trick to do this is to compute the values of x1 1 and x1 2 as you increase p1 from low levels - notice though that for p1 = 0 there is infinite demand of x1] What happens to the consumption of good 1 and good 2 as the price p1 increases? Plot also the offer curve of consumer 2. Graphically, find the intersection, the general equilibrium point
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