Question: X b 2 = 4 not 5 There are two consumers and two goods in an economy. Consumer a has demand x9 = 2, 28

X b 2 = 4 not 5

X b 2 = 4 not 5 There are two consumers and

There are two consumers and two goods in an economy. Consumer a has demand x9 = 2, 28 - 10p1 -2P1 Consumer b has demand x = 412 and x2 = 5. P2. P1 Consumer a's endowment is wa = 10, wg = 0. Consumer b's endowment is wi = 0, w2 = 8. A. At prices p1, p2 what is the value of consumer a's endowment? B. Show that at prices p1, p2, the amount consumer a spends with the demands given above is equal to the value of consumer a's endowment. C. Write down the market clearing condition for good 1 and good 2. D. Assume p = 1. What is the equilibrium price of p2 in this economy

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