Give typing answer with explanation and conclusion    Consider an exchange economy consisting of two people, A and B, endowed with two goods, 1 and 2. Person A is initially endowed with ωA = (0,10) and person B is initially endowed with ωB = (11,0). They have identical preferences, which are given by U^A(x1,x2) = U^B(x1,x2) = x1^2*x2. Suppose that p2 =1. Under the competitive equilibrium, what is p1? Round answers to two decimal places.

Q: The U.S. imports lumber among other goods from Canada. The lumber has been the topic of political…

A: Given,

Q: Consider an exchange economy with two goods, 200 agents of type A, and 100 agents of type B. The…

A: For type A : Ua = ( x1)0.5 Number of agents = 200  Endowment per agent = (10 , 20 )  Budget…

Q: Alice and Bob are both capable of producing goods X and Y.  In one hour, Alice can produce one unit…

A: Alice and Bob are two producers of good X and good Y. Alice produces one unit of each good per hour…

Q: 4) Consider a pure exchange economy with two goods, (x, y), and two consumers, (1, 2). Consumers'…

A: Since you have posted a question with multiple sub-parts, we will solve the first 3 sub-parts for…

Q: actors of production are their labour. When a type-h agent chooses to spend a fraction a of his da…

A: *answer:  Option c.   c. Both agents of type h and g are strictly better off under free trade. Is…

Q: Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A…

A: Given,  The utility function of the consumer A, UA(x1A, x2A)=x1A x2A2 Here, c = 1 (power of x1A) , d…

Q: Elizabeth Swann and her husband consume wine (W) and books (B). Elizabeth's utility function is…

A: Elizabeth's Utility function : Ue = W Endowment : W , B = ( 16 , 5 ) Husband's Utility function : Uh…

Q: Consider a two-agents, two goods economy, in which both agents, A and B, are represented by the…

A: Ua ( x1 , x2 ) = x12 x2 Ub (y1 , y2 ) = y1 y22 Set of pareto optimal allocations is called the…

Q: 3

A: Here, this canbe summed up by considering three cases for the price vector:If p1p2>1/3, then…

Q: A small exchange economy is comprised of two of individuals, A and B, and two types of goods, x,,x,.…

A: * SOLUTION :-

Q: Neha and Sonam consume only Coke and Pepsi in a two person and two goods exchange economy. Neha…

A: In a two person and two goods exchange economy Neha and Sonam consume only Coke and Pepsi. Neha…

Q: Consider trade between two consumers (1 and 2) and two goods, X and Y. Suppose the total quantities…

A: Any kind of shock in one of the markets generally has spillover effects in the other markets in the…

Q: Armando consumes two goods: grapes and wine. He can purchase both at the market and also possesses a…

A: Utility function :  U = x2 y  Price of x : p1  Price of y : p2  Budget Constraint : p1x1 + p2y = w…

Q: = xy a) Consider an economy with 3 agents, Mohammed (M), David (D) and Susan (S). There are two…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Question 5 Consider a competitive exchange economy with two individuals (A and B) and two goods (x…

A: We have two consumers A and B with two goods x and y. Each consumer have initial endowments of both…

Q: An economy has two types of people. The utility function of Type 1 is U(x, y) = x+ y, and that of…

A: The utility function of Type I is The utility function for Type 2 is Initially, type 1 has 8 units…

Q: Consider an economy with 3 agents, Mohammed (M), David (D) and Susan (S). There are two goods…

A: A Pareto-efficient allocation refers to the allocation where any individual can not be better off…

Q: Extend the model of the jungle to the case in which the number of houses is smaller than the number…

A: What is Economic Equilibrium? Economic equilibrium is a condition or state in which economic forces…

Q: 1. Suppose u²(x¹) = min{x1, x₂} and w² = (4,8) for both agents i. (a) Argue that every Pareto…

A: Pareto Optimality and Pareto Efficiency are concepts used in welfare economics to evaluate the…

Q: Suppose there are two consumers, A and B. There are two goods, X and Y. There is a TOTAL of 8 units…

A: The pareto efficiency is the situation in the welfare economics when it is not possible to make…

Q: None

A:

Q: Jack Sparrow and his wife consume wine (W) and books (B). Jack Sparrow's utility function is…

A: Answer -   Pareto Optimal Allocation :- It is the allocation where both the individuals present in…

Q: Suppose you find that MU1(X1Xx2)=2x2 and MU₂(x1+x₂)=2x1. What is the rate at which the consumer is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…