21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹ = (1,2) and e² == (2, 3), and household preferences are u¹(x, y) = x¹/2y1/2 and u² (x, y) = x²/3y1/3. Find (compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹ = (1,2) and e² == (2, 3), and household preferences are u¹(x, y) = x¹/2y1/2 and u² (x, y) = x²/3y1/3. Find (compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.5P
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Transcribed Image Text:21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹ =
(1,2) and e²
==
(2, 3), and household preferences are u¹(x, y) = x¹/2y1/2 and u² (x, y) = x²/3y1/3. Find
(compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
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