Question: Consider a 2 - consumer, 2 - good economy with utility functions u ( 1 ) ( x ) = x 1 + 1 0

Consider a 2-consumer, 2-good economy with utility functions
u
(1)
(
x
)=
x
1
+100
(1
e
x
2
/
10
)
, u
(2)
(
x
)=110
(1
e
x
1
/
10
)+
x
2
and endowments
e
(1)
=(40
,
0)
,e
(2)
=(0
,
50)
.
Normalize prices so that
p
=(
P,
1)
.
1. Find each consumers Marshallian demand for each good as a function of
P.
(Check
carefully for corner solutions for
both
goods.)

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