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U=X^0.5Y^0.5 I=100 X=$19 Y=$18 price of X=$23 (higher than before) find income and substitution effect from price getting higher than before for two utility functions
U=X^0.5Y^0.5
I=100 X=$19 Y=$18 price of X=$23 (higher than before)
- find income and substitution effect from price getting higher than before for two utility functions
- pure exchange economy: illustrate edgeworth box with contract curve, find endowment point, is it pareto efficient? which part can mutually benefit?
- if in competitive equilibrium, find optimal consumption bundle as price ratio function for total endowment
- find competitive equilibrium starting from endowment point, find equilibrium consumptions, price ratios, and consumers' utility levels.
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