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- - Consider a 2 good (X and Y), 2n person (n persons of type A and n persons of type B) replica exchange economy (n = 1, 2, 3, .). Let each person of type A have utility, UA(x , y) = 2x + 3ya and an initial endowment of ex = (20, 16) and let each person of type B have utility, Ua(xB. yB) = 3xb +2yb and an initial endowment of eb = (12, 20). The competitive as well as core allocations are specified by specifying allocation of good X and good Y to a single representative person of type A and a single representative person of type B. Q. This economy has, A no competitive equilibrium B. unique competitive equilibrium C. multiple but finite competitive equilibria D. infinitely many competitive equilibria.

- - Consider a 2 good (X and Y), 2n person (n persons of type A and n persons of type B) replica exchange economy (n = 1, 2, 3, .). Let each person of type A have utility, UA(x , y) = 2x + 3ya and an initial endowment of ex = (20, 16) and let each person of type B have utility, Ua(xB. yB) = 3xb +2yb and an initial endowment of eb = (12, 20). The competitive as well as core allocations are specified by specifying allocation of good X and good Y to a single representative person of type A and a single representative person of type B. Q. This economy has, A no competitive equilibrium B. unique competitive equilibrium C. multiple but finite competitive equilibria D. infinitely many competitive equilibria.

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 8QP
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- - Consider a 2 good (X and Y), 2n person (n persons of type A and n persons of type B) replica exchange economy (n = 1, 2, 3, .). Let each person of type A have utility, UA(x , y) = 2x + 3ya and an initial endowment of ex = (20, 16) and let each person of type B have utility, Ua(xB. yB) = 3xb +2yb and an initial endowment of eb = (12, 20). The competitive as well as core allocations are specified by specifying allocation of good X and good Y to a single representative person of type A and a single representative person of type B. Q. This economy has, A no competitive equilibrium B. unique competitive equilibrium C. multiple but finite competitive equilibria D. infinitely many competitive equilibria.
Transcribed Image Text:- - Consider a 2 good (X and Y), 2n person (n persons of type A and n persons of type B) replica exchange economy (n = 1, 2, 3, .). Let each person of type A have utility, UA(x , y) = 2x + 3ya and an initial endowment of ex = (20, 16) and let each person of type B have utility, Ua(xB. yB) = 3xb +2yb and an initial endowment of eb = (12, 20). The competitive as well as core allocations are specified by specifying allocation of good X and good Y to a single representative person of type A and a single representative person of type B. Q. This economy has, A no competitive equilibrium B. unique competitive equilibrium C. multiple but finite competitive equilibria D. infinitely many competitive equilibria.
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