For Questions 5–7 below, consider the following description of a two-goods economy: Assume two consumers with utility functions of the form U*(x1, T2) 2/3 1/3 = x"x° and U' (yı, Y2) = yi y2. 1/32/3 Further, assume the following initial endowments. consumer X is endowed with w = (9, 3) and consumer Y with w = (3,9). %3D
For Questions 5–7 below, consider the following description of a two-goods economy: Assume two consumers with utility functions of the form U*(x1, T2) 2/3 1/3 = x"x° and U' (yı, Y2) = yi y2. 1/32/3 Further, assume the following initial endowments. consumer X is endowed with w = (9, 3) and consumer Y with w = (3,9). %3D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![For Questions 5–7 below, consider the following description of a two-goods economy:
Assume two consumers with utility functions of the form
2/3 1/3
Y1 Y2
1/3 2/3
U* (x1, x2) = x * and UY (y1, Y2)
%3D
Further, assume the following initial endowments.
consumer X is endowed with wX
=(9,3) and consumer Y with wY = (3,9).
(P1, P2) for which consumer X is a net demander in market
Question 5. Determine all prices p
1 while consumer Y is a net demander in market 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcda051ff-7f81-417f-9026-69c98ea0fcd8%2F893874ce-dec8-44dd-ba5a-fe84eeaccca3%2F7hq1bs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For Questions 5–7 below, consider the following description of a two-goods economy:
Assume two consumers with utility functions of the form
2/3 1/3
Y1 Y2
1/3 2/3
U* (x1, x2) = x * and UY (y1, Y2)
%3D
Further, assume the following initial endowments.
consumer X is endowed with wX
=(9,3) and consumer Y with wY = (3,9).
(P1, P2) for which consumer X is a net demander in market
Question 5. Determine all prices p
1 while consumer Y is a net demander in market 2.
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