Question: Felix's utility is u(x, y) = In(x + y) while Maria's utility is u(x, y) = x + y. Felix has an initial endowment of

Felix's utility is u(x, y) = In(x + y) while Maria's

Felix's utility is u(x, y) = In(x + y) while Maria's utility is u(x, y) = x + y. Felix has an initial endowment of (Wx, Wy)=(6, 10) and Maria has an endowment of (Wx , Wy )=(20, 5). If Px = 1, find the equilibrium demand for Felix and Maria for goods x and y in terms py. Assuming Walras' Law is satisfied, solve for Py

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