I need help with this homework question on part b Question 2.Suppose there are two consumers, A and B, and two goods, X and Y. Theconsumers have the following initial endowments and utility functionsConsumer A:●●X = 5Y = 2UA (X,Y)= MIN (2X,Y)Consumer B:X = 3Y=6UB (X,Y)= 3X + YSuppose the Price of X is Px = $2, and the Price of Y is Py = $1.● b) For the situation above, determine for each market if there is excess demand, excess supply, or themarket is in equilibrium (circle the correct answer). If there is excess demand or excess supply,determine how much it is.Market for Good X:Excess Demand =Excess Supply:The market is in equilibriumMarket for Good Y:Excess DemandExcess Supply:=The market is in equilibrium

The setting wherein every single market in a system is instability at the same point is commonly…

Question 2. Suppose there are two consumers, A and B, and two goods, X and Y. The consumers have the following initial endowments and utility functions Consumer A: ● ● Consumer B: X=5 Y = 2 UA (X,Y)= MIN (2X,Y) ● X = 3 Y=6 UB (X,Y)= 3X + Y Suppose the Price of X is Px = $2, and the Price of Y is Py = $1. ●

Question 2. Suppose there are two consumers, A and B, and two goods, X and Y. The consumers have the following initial endowments and utility functions Consumer A: ● ● Consumer B: X=5 Y = 2 UA (X,Y)= MIN (2X,Y) ● X = 3 Y=6 UB (X,Y)= 3X + Y Suppose the Price of X is Px = $2, and the Price of Y is Py = $1. ●

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

ChapterE: Budget Constraint And Indifference Curve Analysis

Section: Chapter Questions

Problem 3QP

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