4 In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Suppose that Tony's utility function isU; = G,H;and that Margaret's utility function isUm = Gm (Hm)2.Between them, they own 200 units of G and 400 units of H.Determine p, the competitive price of G, where the price of H is normalized to equal one.The general equilibrium price, p, equalsO A.- G, + 400p=800 + 2H,OB.H, - 800p=2400 - GOc.зн, + 800p=800 – 2G,O D.зн, + 200p=400 – 2G,OE.Hi+ 800p=800 - G

Answered: 800 + 2H, OB. O B. H - 800 p= 2400 - G

Business

Economics

800 + 2H, OB. O B. H - 800 p= 2400 - G

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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