Re: GE doubt

Posted by happy on Jun 15, 2017; 2:40am
URL: http://discussion-forum.276.s1.nabble.com/GE-doubt-tp7605611p7605613.html

[(5,5),(5,0)] to [(10,5),(0,0)]  only Competitive equilibrium at price (0, Py)

if we set P = (Px, 0) then individual 2 will demand 10 unit of y in order to maximize his utility at these price, which is not possible in competitive equilibrium

and at any positive price => No competitive equilibrium