Question
U=X^0.1Y^0.9 U=X^0.5Y^0.5 Income=5000 Price of X=$50 Price of Y=$60 (U1 starts with 1 x 9 y and U2 starts with 9 x and 1 y)
U=X^0.1Y^0.9
U=X^0.5Y^0.5
Income=5000 Price of X=$50 Price of Y=$60
(U1 starts with 1 x 9 y and U2 starts with 9 x and 1 y)
Q: If economy is competitive equilibrium, find equilibrium consumption bundles as functions of the price ratio and total endowments
Q: describe competitive equilibrium and calculate equilibrium consumptions, price ratios, consumers' utility levels.
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Latin America's Economy Diversity, Trends, And Conflicts
Authors: Eliana Cardoso, Ann Helwege
1st Edition
0262531259, 9780262531252
