Question: Suppose there are two consumers A, B with utility functions uA(x) + X2 and endowments and Step 1 Find the demand. Note first the


Suppose there are two consumers A, B with utility functions uA(x) + X2 and endowments and Step 1 Find the demand. Note first the "income" of consumer A corresponds to the value of her endowment, pen. Then, we can solve the Utility maximi- sation problem to find: Xin (p) O
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