3. Consider a two consumer endowment economy. Consumer 1 and consumer 2 come into the economy...

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3. Consider a two consumer endowment economy. Consumer 1 and consumer 2 come into the economy with an endowment of good x and

x = Suppose you have calculated the demand functions for consumer 1 and found: ti = 3+922 PE Py (b) Compute the market demand

(c) State Walras Law and show it holds. (3 points) (d) Find the general equilibrium price ratio using the market clearing con

business economics

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Answer 1

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Q 4 = x314 y 1/4 U2= x/44 3/4 4= (4,12) (2=(8,6) for 2.) Max U2 9 DATE: a) PAGE : MUXIMU ya 80 at Eqm st XP x + Y Py = M2 80

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