Re: General Equilibrium - May 18

Posted by Amit Goyal on May 18, 2012; 2:53pm
URL: http://discussion-forum.276.s1.nabble.com/General-Equilibrium-May-18-tp7565438p7565531.html

Well done Vasudha. You correctly found the set of efficient allocations. But the competitive equilibrium in this problem does not exist. At price ratio 1, consumer 1 will demand (0, 12) and not (12, 0).