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To illustrate these various principles, consider a simple two-person, two-good exchange economy. Suppose that total quan
Posted: Wed Mar 09, 2022 8:31 am
by answerhappygod
- To Illustrate These Various Principles Consider A Simple Two Person Two Good Exchange Economy Suppose That Total Quan 1 (19.21 KiB) Viewed 34 times
To illustrate these various principles, consider a simple two-person, two-good exchange economy. Suppose that total quantities of the goods are fixed ată = y = 1,000. Person A's utility takes the Cobb-Douglas form: U.(xy) = xy (13.43) and person B's preferences are given by Ug(xYx) = (13.44) , 1/3 1/3, 2/3