general equilibrium

[ashish_kr]

i am getting equilibrium price correct but why quantity wrong?

[duck]

Hi Ashish :)

You can easily check that there is some problem in the answer you have posted.

As per your answer, the equilibrium allocation for consumer 1 is (x_1*, y_1*) = (1,0) and equilibrium prices (px, py) = (1,1/4) .

At the above price ratio, income of consumer 1 = 0*1 + 1*1/4 = 1/4

But the allocation (x_1*, y_1*) = (1,0) is not affordable.

I think you have done some calculation error while finding equilibrium allocation.

[ashish_kr]

yes, it was calculation error...thanks.