sau 2015.URGENT

[ahlashi]

A and B consume only 2 goods x and y
utility fucntion for A is 2x+y and for B is x*y
they trade only with each other
so equilibrium price is ?

please help

[Dreyfus]

Assuming that Agent A has some positive endowment, The equilibrium price
ratio is 2 because no matter what the price Agent B's demand will be an
interior solution while if price ratio turns out be greater than 2 then
Agent A will only demand Y leading to excess supply of X and excess demand
for Y and if price ratio turns out to be less than 2 then Agent A will only
demand for X leading to excess demand for X and excess supply for Y.
Therefore market clearing equilibrium price ratio is 2.