- - 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.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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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