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1/31/2 5. The traders' utilities are the following u¹(x₁, x₂) = x²/³x½/³ and u²(x₁,x₂) = x/³x². Their 2/31/3 X₂ initial endowments are a¹ = (10,10) and a² = (20,5). Traders come to a market and exchange commodities to maximize their utilities. Compute the price vector in equilibrium. Compare the utilities before and after the exchange.

1/31/2 5. The traders' utilities are the following u¹(x₁, x₂) = x²/³x½/³ and u²(x₁,x₂) = x/³x². Their 2/31/3 X₂ initial endowments are a¹ = (10,10) and a² = (20,5). Traders come to a market and exchange commodities to maximize their utilities. Compute the price vector in equilibrium. Compare the utilities before and after the exchange.

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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and u (x,x2) = x'*x}² . Their 5. The traders' utilities are the following u'(x, x2 ) = x*x 2/31/3 1/2 initial endowments are a' = (10,10) and a? = (20,5). Traders come to a market and || exchange commodities to maximize their utilities. Compute the price vector in equilibrium. Compare the utilities before and after the exchange.
Transcribed Image Text:and u (x,x2) = x'*x}² . Their 5. The traders' utilities are the following u'(x, x2 ) = x*x 2/31/3 1/2 initial endowments are a' = (10,10) and a? = (20,5). Traders come to a market and || exchange commodities to maximize their utilities. Compute the price vector in equilibrium. Compare the utilities before and after the exchange.
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