Consider a pure exchange endowment economy where consumers are given endowments equal to (TA, JA, TB,...

  

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Consider a pure exchange endowment economy where consumers are given endowments equal to (TA, JA, TB, UB) = (2, 1, 1, 2). Preferences for the consumers are identical and for i = A, B. What is the excess demand function for the given by Ui (xi, Yi) = x; Y₁ market for good y? Consider a pure exchange endowment economy where consumers are given endowments equal to (TA, JA, TB, UB) = (2, 1, 1, 2). Preferences for the consumers are identical and for i = A, B. What is the excess demand function for the given by Ui (xi, Yi) = x; Y₁ market for good y?

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To determine the excess demand function for the market of good y we need to find the aggregate deman... View the full answer