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24 total points) Suppose there are two consumers, A and B, and two gods, X and given an initial endowment of 9 units of good X and 14 units of good en a ina ds, X and Y. Consumer A is Y. Consumer B is given an imitia endowment of 7 units of good X and 2 units of good Y. Consumer As utility function is given by: And consumer Bs utility function is given by Therefore, consumer As marginal utilities for each good are given by MUY X3 Also, consumer Bs marginal utilities for each good are given by: MUx-Y MUY X a) (8 points) Suppose the price of good Y is equal to one. Calculate the price of good X that will lead to a competitive equilibrium

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Answer #1

2 Muy Rs rnvY 3Y 2. 3

answered by: ANURANJAN SARSAM
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