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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) = 2xa + 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) = 2xa + 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) = 2xa + 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) = 2xa + 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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