Question: 2. (16 points) Suppose there are two consumers, A and B, and two goods, X and Y. The consumers have the following initial endowments and

2. (16 points) Suppose there are two consumers, A and B,

2. (16 points) 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: X - 1 Y = 1 UA (X, Y) = MIN (X,Y) Consumer B: X - 7 Y - I Un- Xly Suppose the Price of X is Py = $1, and the Price of Y is Py = $1. (8 points) For the situation above, determine for each market if there is excess demand, excess supply, or the market is in equilibrium (circle the correct answer). If there is excess demand or excess supply, determine how much it in Market for Good X: Excess Demand = Excess Supply = The market is in equilibrium Market for Good Y's Excess Demand = Excess Supply = The market is in equilibrium

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