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Think of 2 consumers in a pure exchange economy with a single good and two periods. Consumer 1 has an endowment of 2 units of
Think of 2 consumers in a pure exchange economy with a single good and two periods. Consumer 1 has an endowment of 2 units of the good in period 1 and 3 units in period 2. Consumer 2 has an endowment of 1 unit in each period. Their respective utility functions are given below (the subscript refers to the consumer, and the superscript refers to the time period that defines the good): UI(x1) = In(x1') + 2In(x12) U2(x2) = (x2')#(x2?) 1 Define a Walrasian equilibrium in this economy. 2 Solve for the equilibrium
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