Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne's utility function is UA = ZACA and Stephen's is Us = (Zs) 0.5 (Cs) 0.5 Their endowments are ZA = 18, CA = 80, Zg = 2, and Cg = 40. What are the competitive equilibrium prices, where one price is normalized to equal one? Determine p, the competitive price of Z, where the price of C is normalized to equal one. The competitive price, p, is $ (Enter your response rounded to two decimal places.)
Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne's utility function is UA = ZACA and Stephen's is Us = (Zs) 0.5 (Cs) 0.5 Their endowments are ZA = 18, CA = 80, Zg = 2, and Cg = 40. What are the competitive equilibrium prices, where one price is normalized to equal one? Determine p, the competitive price of Z, where the price of C is normalized to equal one. The competitive price, p, is $ (Enter your response rounded to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne's utility function is
UA=ZACA
and Stephen's is
Us = (Zs) 0.5 (Cs) 0.5
Their endowments are ZA = 18, CA = 80, Zg = 2, and Cg = 40. What are the competitive equilibrium prices, where one price is
normalized to equal one?
Determine p, the competitive price of Z, where the price of C is normalized to equal one.
The competitive price, p, is $. (Enter your response rounded to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9a8d142-b25c-408d-9b46-e62ec9cc8e18%2F4386c205-deac-4516-a232-55c37a214da0%2F3tz0f9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne's utility function is
UA=ZACA
and Stephen's is
Us = (Zs) 0.5 (Cs) 0.5
Their endowments are ZA = 18, CA = 80, Zg = 2, and Cg = 40. What are the competitive equilibrium prices, where one price is
normalized to equal one?
Determine p, the competitive price of Z, where the price of C is normalized to equal one.
The competitive price, p, is $. (Enter your response rounded to two decimal places.)
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