Consider the a pure exchange economy with commodity space X = R. Let w1 12 =...

 

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Consider the a pure exchange economy with commodity space X = R. Let w₁1 12 = 1/3,W21 , and w22. Consumers have utility functions 1₁(x11, X12) = ize P2 = 1. 12(X21, X22) = [C 3 12 37 3 12 (17) x T x₂1² + x₂₂² |__ Solve for the unique competitive equilibrium allocation and price. Normal- 33 Draw the Edgeworth Box for this economy. Label the endowment, equilib- rium price vector, equilibrium allocation, and indifference curves of each consumer at equilibrium. Consider the a pure exchange economy with commodity space X = R. Let w₁1 12 = 1/3,W21 , and w22. Consumers have utility functions 1₁(x11, X12) = ize P2 = 1. 12(X21, X22) = [C 3 12 37 3 12 (17) x T x₂1² + x₂₂² |__ Solve for the unique competitive equilibrium allocation and price. Normal- 33 Draw the Edgeworth Box for this economy. Label the endowment, equilib- rium price vector, equilibrium allocation, and indifference curves of each consumer at equilibrium.

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To solve for the unique competitive equilibrium allocation and price in this pure exchange economy we need to follow a stepbystep process Lets go thro... View the full answer