Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. Consumer A is initially endowed with 10 units of good 1 and 10 units of good 2. Consumer B is initially endowed with 2 units of good 1 and 2 units of good 2. The consumers have the following utility functions: ua(X1a,X2a)=X1AX2A²; uB(x1B,X2B)=X1B+X2g. Among the prices below, which ones are Walrasian equilibrium prices? O a. p1=3, p2 =2 O b. p1=4, P2 =5 O C. None of the other answers. O d. p1=5, p2 =4 O e. P1=2, p2 =3
Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. Consumer A is initially endowed with 10 units of good 1 and 10 units of good 2. Consumer B is initially endowed with 2 units of good 1 and 2 units of good 2. The consumers have the following utility functions: ua(X1a,X2a)=X1AX2A²; uB(x1B,X2B)=X1B+X2g. Among the prices below, which ones are Walrasian equilibrium prices? O a. p1=3, p2 =2 O b. p1=4, P2 =5 O C. None of the other answers. O d. p1=5, p2 =4 O e. P1=2, p2 =3
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and
consumer B. Consumer A is initially endowed with 10 units of good 1 and 10 units of good 2. Consumer B is initially
endowed with 2 units of good 1 and 2 units of good 2. The consumers have the following utility functions:
ua(X1a,X2a)=X1AX2A²; uB(x1B,X2B)=X1B+X2g. Among the prices below, which ones are Walrasian equilibrium prices?
O a. p1=3, p2 =2
O b. p1=4, P2 =5
O C.
None of the other answers.
O d. p1=5, p2 =4
O e. P1=2, p2 =3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d1d8b3e-0db7-45bf-acd5-895083820ff4%2Fb849a102-6b94-4418-86a5-5e900c03c80f%2Fub7beko_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and
consumer B. Consumer A is initially endowed with 10 units of good 1 and 10 units of good 2. Consumer B is initially
endowed with 2 units of good 1 and 2 units of good 2. The consumers have the following utility functions:
ua(X1a,X2a)=X1AX2A²; uB(x1B,X2B)=X1B+X2g. Among the prices below, which ones are Walrasian equilibrium prices?
O a. p1=3, p2 =2
O b. p1=4, P2 =5
O C.
None of the other answers.
O d. p1=5, p2 =4
O e. P1=2, p2 =3
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