2 10 2. Consider an economy with 2 agents A and B having endowments of only 2 commodities x and y. So endowment of for agent A is denoted by EA and that of y for agent A is denoted by E4. Similar notation applies for B. The endowments and utility for A,UA and B, UB are as follows. So according to the table and notation EA = 10 and EB = 10 agent U (x, y) 20 UA = 20.4.40.6 B 20 10 Ub = 20.6.40.4 Consider 2 sets of prices for 2, P. and y, P, as given below. These are price vectors p1 and p2 P2 Pi 2 So pi {P.x = 1, Py = 2} and P2 {Px = 2, Py = 1} P2 2 1 Fill the following table for Excess Demand for price vectors P and P2 price ED, ED, P1 P2 Py 1 Fill the following table for VALUE of Excess Demand for price vectors Pi and p2 price VED. VED Pi P2 Does Walras' law hold at price vectors p1 and p2? 2 10 2. Consider an economy with 2 agents A and B having endowments of only 2 commodities x and y. So endowment of for agent A is denoted by EA and that of y for agent A is denoted by E4. Similar notation applies for B. The endowments and utility for A,UA and B, UB are as follows. So according to the table and notation EA = 10 and EB = 10 agent U (x, y) 20 UA = 20.4.40.6 B 20 10 Ub = 20.6.40.4 Consider 2 sets of prices for 2, P. and y, P, as given below. These are price vectors p1 and p2 P2 Pi 2 So pi {P.x = 1, Py = 2} and P2 {Px = 2, Py = 1} P2 2 1 Fill the following table for Excess Demand for price vectors P and P2 price ED, ED, P1 P2 Py 1 Fill the following table for VALUE of Excess Demand for price vectors Pi and p2 price VED. VED Pi P2 Does Walras' law hold at price vectors p1 and p2