Re: General Equilibrium - June 17

Posted by Amit Goyal on Jun 17, 2012; 10:08am
URL: http://discussion-forum.276.s1.nabble.com/General-Equilibrium-June-17-tp7577923p7577948.html

There is a Walrasian/Competitive equilibrium in this economy:
When price of X is Rs. 2/- and price of Y is Re. 1/-.
Individual 1 will consume only Y: (0, 3)
Individual 2 will consume his endowment: (1, 1)
Individual 3 will consume only X: (1.5, 0)
Individual 4 will also consume only X: (1.5, 0)