Exercise 9.1. Prove that the allocation characterized in Proposition 9.1 is the unique competitive equilibrium. [Hint: first,
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Exercise 9.1. Prove that the allocation characterized in Proposition 9.1 is the unique competitive equilibrium. [Hint: first, show that there cannot be any equilibrium with pj > pj−1 for any j. Second, show that even if p0 > p1, household i = 0 must consume only commodity j = 0; then inductively, show that this is true for any household].
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