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Suppose you are given the following information about a two-good, two-person economy.
Individual A: Preferences: UA = xy2; PPF: y = 200 – x.
Individual B: Preferences: UA = x2y; PPF: y = 200 – 2x.
What does aggregate supply of good x equal in this economy if (px/py) = 3?
Can anyone show the entire working? I am stuck. :(
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