Question: 1. (12 points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of

1. (12 points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial

endowment of 30 units of good X and 10 units of good

Y. Consumer B is given an initial endowment of 60 units of

1. (12 points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 30 units of good X and 10 units of good Y. Consumer B is given an initial endowment of 60 units of good X and 10 units of good Y. Consumer A's utility function is given by: UA(X, Y) = X19#Y8/9 And consumer B's utility function is given by UB(X, Y) = X1/3*Y1/3 a) (8 points) Suppose the price of good Y is equal to 1 (Py = $1). Calculate the price of good X that will lead to a competitive equilibrium.b) (2 points) How much of each good does consumer A demand in equilibrium? Good X: Good Y: c) (2 points) How much of each good does consumer B demand in equilibrium? Good X: Good Y

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