1.Consider an economy with 2 goods and 30 agents. There are 10 agentseach with the indirect utility function v (P1, P2, y)= „ and endowments e =y3Pip?(3, 1).Also, the other 20 agents each have the utility function u (x1, x2)endowments e:Vx1x2 and(1, 2). Normalize pi = 1. Calculate the Walrasian equilibrium priceP2.

U×PX,Yy,M= maxUx,yPxx+Pyy≤M=Ux*,y*=UDxPx,Py,M,DyPx,Py,M

Consider an economy with 2 goods and 30 agents. There are 10 agents y3 each with the indirect utility function v (p1, P2, Y) = 2 and endowments e = Also, the other 20 agents each have the utility function u(x1, x2) endowments e = (3, 1). V1x2 and (1, 2). Normalize p = 1. Calculate the Walrasian equilibrium price p3.

Consider an economy with 2 goods and 30 agents. There are 10 agents y3 each with the indirect utility function v (p1, P2, Y) = 2 and endowments e = Also, the other 20 agents each have the utility function u(x1, x2) endowments e = (3, 1). V1x2 and (1, 2). Normalize p = 1. Calculate the Walrasian equilibrium price p3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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