Walrasian equilibrium

Posted by RichaS on Feb 23, 2017; 12:43pm
URL: http://discussion-forum.276.s1.nabble.com/Walrasian-equilibrium-tp7603269.html


The answer to the second part (competitive equilibrium) is the 45° line from top left to bottom right in an edgeworth box with price ratio equal to 1.
But can anyone explain how? I got the price ratio=1 but not the equilibrium allocations.