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Question: having a hard time solving problem 4...

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Having a hard time solving problem 4. 3. In an exchange economy, there are two people (A and B), and two goods (X and Y). The utility functions of A and B are given by U1 = X1 and UB =硝Y . There are 10 units of X and 10 units of Y in total. Which of the following gives a condition for Pareto optimality? (a) Ya =XA 4. (Contin fro previous question) Suppose person A is originally endowed with all 10 units of good X and person B is originally endowed with all 10 units of good Y. Let p be the price of good X and let the priv of goud Y be 1. What is the cotmpetitive equilibrium value of p? (a) p= 4/9 (b) p=9/4 (c) p=2 (d) p 1/2

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