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Suppose there are two consumers, A and B. The utility functions of each consumer are given by: U A (X,Y) = X * Y U

Suppose there are two consumers, A and B.

The utility functions of each consumer are given by:

UA(X,Y) = X*Y

UB(X,Y) = X*Y3

Therefore:

For consumer A: MUX= Y; MUY= X

For consumer B: MUX= Y3; MUY= 3XY2

The initial endowments are:

A: X = 10; Y = 6

B: X = 14; Y = 19

How much of each good does each consumer demand in equilibrium?

Consumer A's Demand for X:

Consumer A's Demand for Y

Consumer B's demand for X

Consumer B's demand for Y

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