Consider an exchange economy with two-person and initial
endowments (π₯11, π₯21, π₯12, π₯22) = (50, 250, 50, 25), and utility
functions π1(π1) = π₯11π₯21 and π₯12π₯22 = ) ( 2 2 X U
Note the superscripts 1 and denote individual 1 and 2,
respectively. Derive the equation defining the contract curve. What
does it tell? Solve for the competitive-equilibrium allocation and
prices. Show them graphically.
Consider an exchange economy with two-person and initial endowments (𝑥11, 𝑥21, 𝑥12, 𝑥22)
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answerhappygod
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