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Mathematics, 10.07.2019 05:20 isophk
Consider a pure exchange economy with two consumers, ann (a) and bob (b), and two commodities, 1 and 2, denoted by (x a 1 , xa 2 ) and (x b 1 , xb 2 ). ann’s initial endowment consists of 5 units of good 1 and 10 units of good 2. bob’s initial endowment consists of 10 unit of good 1 and 5 units of good 2. the consumers’ preferences are represented by the following utility functions: u a(x a 1 , xa 2 ) = min{x a 1 , xa 2 } and u a(x b 1 , xb 2 ) = min{x b 1 , xb 2 }. denote by p1 and p2 the price of good 1 and good 2, respectively
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Consider a pure exchange economy with two consumers, ann (a) and bob (b), and two commodities, 1 and...
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