Two goods and two consumers in a pure exchange economy, with and . Each of and is endowed with units of and units of . If the price of is normalised to , the equilibrium price of is ________ (rounded off to two decimal places).
Two goods and two consumers in a pure exchange economy, with and . Each of and is endowed with units of and units of . If the price of is normalised to , the equilibrium price of is ________ (rounded off to two decimal places).
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Two goods X, Y and two consumers A, B in a pure exchange economy, with U_A = 2X⁰·⁴Y⁰·⁶ and U_B = X⁰·³Y⁰·⁷. Each of A and B is endowed with 50 units of X and 20 units of Y. If the price of Y is normalised to 1, the equilibrium price of X is (rounded off to two decimal places).
Also written as: Two goods X, Y and two consumers A, B in a pure exchange economy, with U_A = 2X^(0.4)Y^(0.6) and U_B = X^(0.3)Y^(0.7). Each of A and B is endowed with 50 units of X and 20 units of Y. If the price of Y is normalised to 1, the equilibrium price of X is (rounded off to two decimal places).
General equilibrium and exchange economies has come up 69 times in 7 exams since 2004.
This question is on Competitive equilibrium in an exchange economy, part of General equilibrium and exchange economies in Microeconomics.
Finding the prices at which every consumer's chosen bundle clears the market.
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