Hey could you help me with Q 46 of the DSE 2011 paper?This ques has me really confused.
Q.Exchange economy.2 goods.2 agents. u1=min{x1,y1} and u2=min{x2,y2}. Agent 1's endowment is (0,a) and agent 2's (b,0).What is generally true?
a)any allocation in each agent gets equal amts of the 2 goods is an equilibrium allocation.
b)if b<a, price of X=0
c)if b>a, price of X=0
d)any allocation in which agent 2 gets none of the allocation of good Y is an equilibrium allocation.
Locked
