Question: Consider the two - by - two pure exchange economy. Denote the consumption bundle for each individual i = { 1 , 2 } as
Consider the twobytwopure exchange economy. Denote the consumption bundle for each individual i as xi xixiSuppose endowments are omega i for each iFurther suppose preferences are characterized by the following utility functions:
Uxminxx
Uxmaxxx
Characterize the equilibrium allocationsxi in this economy, if any.
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