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Question: in an exchange economy there are two people a and...

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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 UA = XẪYẦ and UB = XểYa. There are 10 units of X and 10 units of Y in total. Which of the following gives a condition for Pareto optimality? 20X 30XA (Continued from 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 price of good Y be 1. What is the competitive equilibrium value of p? (a) p=4/9 (b) p - 9/4 (d) p= 1/2

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