Question: please help The two consumers (A and B) consume two goods (Good 1 and Good 2). Suppose they are characterized by the utility functions: uB

please help The two consumers (A and B) consume two goods

please help

The two consumers (A and B) consume two goods (Good 1 and Good 2). Suppose they are characterized by the utility functions: uB (xP, IB) = (15)2 Initially, WA = (wa, wa) and wB = (wp, wB) are allocated to two consumers. (a) Determine the utility maximization problem only for consumer A with the budget constraint pill + p212 0 and list the necessary conditions that a maximizer has to satisfy. (b) Compute the maximizer and indicate why it is the maximizer. (c) Show that the Walrasian demand function of consumer A is I WA( P, WA ) = WA 2p1 P2 W2: 3p2 + W 2 3p1

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