Question: Hi, I have a question for which the answer is provided but I don't know how it is derived, could you help to explain it
Hi, I have a question for which the answer is provided but I don't know how it is derived, could you help to explain it step by step please?
Thank you in advance!

In Problem 2, Astrid's utility function is U(HA, CA) = HACA. Birger's utility function is min{HB, CB). If Astrid's initial endowment is no cheese and 3 units of herring and if Birger's initial endowments are 13 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, demand equals supply in the herring market. This implies that Correct! O 13/(p + 1) + 1.50 = 3. O min {3, 13} = p. 13/p + 3/2p = 3. O 3/13 = p. 13/3 = p
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