Question: Assume there are 20 identical individuals with a utility function U(x, y) = /xy and income I= s100. Also, assume that the price for

Assume there are 20 identical individuals with a utility function U(x, y)

Assume there are 20 identical individuals with a utility function U(x, y) = /xy and income I= s100. Also, assume that the price for good y is p, = 4. Furthermore, assume there are 10 identical firms producing good x and using a production function q = VI (i.e., production only depends on labor). Also, assume that the price of labor is w= $0.5. What is the equilibrium price and quantity in this market?

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