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1. Consider an economy with two consumers, A and B. The utility functions of the consumers are: UA(X1X2)=(x1)2×₂A UB(X1,X2) = X1BX2B Normalizing price of good 2, P2 = 1, find the general equilibrium price and quantities consumed by these consumers, given the initial endowments are WA = (15, 3) and w = (5, 17).

1. Consider an economy with two consumers, A and B. The utility functions of the consumers are: UA(X1X2)=(x1)2×₂A UB(X1,X2) = X1BX2B Normalizing price of good 2, P2 = 1, find the general equilibrium price and quantities consumed by these consumers, given the initial endowments are WA = (15, 3) and w = (5, 17).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Consider an economy with two consumers, A and B. The utility functions of the consumers are: UA(X1X2)=(x1)2×₂A UB(X1,X2) = X1BX2B Normalizing price of good 2, P2 = 1, find the general equilibrium price and quantities consumed by these consumers, given the initial endowments are WA = (15, 3) and w = (5, 17).
Transcribed Image Text:1. Consider an economy with two consumers, A and B. The utility functions of the consumers are: UA(X1X2)=(x1)2×₂A UB(X1,X2) = X1BX2B Normalizing price of good 2, P2 = 1, find the general equilibrium price and quantities consumed by these consumers, given the initial endowments are WA = (15, 3) and w = (5, 17).
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