Question: Consider a 2 - consumer, 2 - good economy with utility functions u ( 1 ) ( x ) = x 1 + 1 0
Consider a consumer, good economy with utility functions
u
x
x
e
x
u
x
e
x
x
and endowments
e
e
Normalize prices so that
p
P
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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