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....

Consider the pure exchange economy with<br>2 goods, good 1 and good 2, and two<br>consumers, consumer A and consumer B.<br>Consumer A is initially endowed with 10<br>units of good 1 and 10 units of good 2.<br>Consumer B is initially endowed with 2<br>units of good 1 and 2 units of good 2. The<br>consumers have the following utility<br>functions: uA(x1A,X2A)=X1A×2A²;<br>uB(X1B,X2B)=x1B+×2B• Among the prices<br>below, which ones are Walrasian<br>equilibrium prices?<br>а.<br>P1=3, p2 =2<br>b.<br>p1=4, p2 =5<br>С.<br>None of the other answers.<br>d.<br>P1=2, P2 =3<br>е.<br>p1=5, p2 =4<br>

Extracted text: 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)=X1A×2A²; uB(X1B,X2B)=x1B+×2B• Among the prices below, which ones are Walrasian equilibrium prices? а. P1=3, p2 =2 b. p1=4, p2 =5 С. None of the other answers. d. P1=2, P2 =3 е. p1=5, p2 =4

Jun 10, 2022

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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....

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