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Question: 14 consider an exchange economy consisting of two people a...

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14. Consider an exchange economy consisting of two people, A and B, endowed with two goods, 1 and 2. Person A is initially endowed with(21,0) and person B is initially endowed with (0.42). Person As preferences are given by UA(11.r2) = 12 and Person Bs preferences are given (a) Write the eqiaation of the entract eurve (express รื่ s a function of rn (b) Let pa-1. Find the competitive equilibrium peice, P, and allocations 4 g and e) Now suppose that person As preferences are instead given by U(min(2,bu the endowments and B Find the competitive equilibrium price,

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