12. Consider a pure 2-consumer 2-good exchange economy under a competitive price system. Consumers' A and B preferences are represented by utility functions Consider a pure 2-consumer 2-good exchange economy under a competitive price system. Consumers' A and B preferences are represented by utility functions uA(x1A,x2A)=x1A+2x2A, uB(x1B,x2B)=x1Bx2B, and their initial endowments are FA=(2,0) and (78=(0,2), respectively. Then, a competitive equilibrium allocation is: a) (x1A,x2A)=(0,1), (x1B.x2B)=(1,1) b) (x1A,x2A)=(0,2), (x1B,x2B)=(2,0) c) (x1A,x2A)=(1,1). (x1B,x2B)=(0,1) d) (x1A,x2A)=(1,1), (x1B,x2B)=(2,1) e) none of the previous statements a-d is correct.

12. Consider a pure 2-consumer 2-good exchange economy under a competitive price system. Consumers' A and B preferences are represented by utility functions Consider a pure 2-consumer 2-good exchange economy under a competitive price system. Consumers' A and B preferences are represented by utility functions uA(x1A,x2A)=x1A+2x2A, uB(x1B,x2B)=x1Bx2B, and their initial endowments are FA=(2,0) and (78=(0,2), respectively. Then, a competitive equilibrium allocation is: a) (x1A,x2A)=(0,1), (x1B.x2B)=(1,1) b) (x1A,x2A)=(0,2), (x1B,x2B)=(2,0) c) (x1A,x2A)=(1,1). (x1B,x2B)=(0,1) d) (x1A,x2A)=(1,1), (x1B,x2B)=(2,1) e) none of the previous statements a-d is correct.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.5P

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