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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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