Consider an economy with two consumers A and B and two goods 1 and 2. The utilities of the consumers are given by: uд(x, x) = x^x^ and u¸ (x, x²) = xỉ x² Their initial endowments are (w₁, w^) = (30,300) and (w₁, w₁) = (170, 100) If the two consumers exchange goods with each other in the course of trade, what is their equilibrium allocation? a. (x, x) = (150, 150), (x, x) = (50, 250) O b. None of the other responses is correct Oc. (x, x) = (75, 125), (x, x) = (125,275) Od. (x, x)=(30, 300), (x,x) = (170, 100) Oe. (x,x) (100, 200), (x, x) = (100,200) Of. (x, x) = (50, 200), (x, x) = (150,200) Og. (x, x)=(60, 100), (x, x) = (140, 300) Oh. (x,x)=(150, 180), (x,x) = (50,220) O i. (x, x) = = (90, 180), (x, x) = (110,220)
Consider an economy with two consumers A and B and two goods 1 and 2. The utilities of the consumers are given by: uд(x, x) = x^x^ and u¸ (x, x²) = xỉ x² Their initial endowments are (w₁, w^) = (30,300) and (w₁, w₁) = (170, 100) If the two consumers exchange goods with each other in the course of trade, what is their equilibrium allocation? a. (x, x) = (150, 150), (x, x) = (50, 250) O b. None of the other responses is correct Oc. (x, x) = (75, 125), (x, x) = (125,275) Od. (x, x)=(30, 300), (x,x) = (170, 100) Oe. (x,x) (100, 200), (x, x) = (100,200) Of. (x, x) = (50, 200), (x, x) = (150,200) Og. (x, x)=(60, 100), (x, x) = (140, 300) Oh. (x,x)=(150, 180), (x,x) = (50,220) O i. (x, x) = = (90, 180), (x, x) = (110,220)
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.5P
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![Consider an economy with two consumers A and B and two goods 1 and 2. The
utilities of the consumers are given by:
uд(x, x) = x*x and u(x, x) = xỉ x
Their initial endowments are (w, w₁) = (30, 300) and (w₁, w₁) =
(170, 100)
If the two consumers exchange goods with each other in the course of trade,
what is their equilibrium allocation?
a. (x, x) = (150, 150), (x, x) = (50, 250)
O b.
None of the other responses is correct
○ c.
(x, x) = (75,125), (x, x) = (125,275)
Od. (x, x) = (30,300), (x, x) = (170, 100)
e. (x, x) = (100, 200), (x, x) = (100,200)
Of. (x, x) = (50,200), (x, x) = (150, 200)
g. (x, x) = (60, 100), (x, x) = (140,300)
Oh. (x, x) = (150, 180), (x, x) = (50,220)
Oi. (x,x)=(90, 180), (x, x) = (110,220)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F915849e6-abac-413b-acf8-3c483e64f415%2Faedd88f0-acd4-478b-a854-a4693b7251ec%2F6dilvgc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider an economy with two consumers A and B and two goods 1 and 2. The
utilities of the consumers are given by:
uд(x, x) = x*x and u(x, x) = xỉ x
Their initial endowments are (w, w₁) = (30, 300) and (w₁, w₁) =
(170, 100)
If the two consumers exchange goods with each other in the course of trade,
what is their equilibrium allocation?
a. (x, x) = (150, 150), (x, x) = (50, 250)
O b.
None of the other responses is correct
○ c.
(x, x) = (75,125), (x, x) = (125,275)
Od. (x, x) = (30,300), (x, x) = (170, 100)
e. (x, x) = (100, 200), (x, x) = (100,200)
Of. (x, x) = (50,200), (x, x) = (150, 200)
g. (x, x) = (60, 100), (x, x) = (140,300)
Oh. (x, x) = (150, 180), (x, x) = (50,220)
Oi. (x,x)=(90, 180), (x, x) = (110,220)
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