Ashly and Betty consume X and Y. Ashly’s utility function is UA=XA0.6YA0.4 Betty's utility function is UB= XB0.4YB0.6 Their inital endowments are XA=10 , YA= 20, XB=20, YB= 10 Assuming that the price of Y is equal to 1, compute the competitive equilibrium of this economy
Ashly and Betty consume X and Y. Ashly’s utility function is UA=XA0.6YA0.4 Betty's utility function is UB= XB0.4YB0.6 Their inital endowments are XA=10 , YA= 20, XB=20, YB= 10 Assuming that the price of Y is equal to 1, compute the competitive equilibrium of this economy
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ashly and Betty consume X and Y.
Ashly’s utility function is UA=XA0.6YA0.4
Betty's utility function is UB= XB0.4YB0.6
Their inital endowments are XA=10 , YA= 20, XB=20, YB= 10
Assuming that the
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