Re: GE doubt

Posted by happy on Jun 15, 2017; 3:02am
URL: http://discussion-forum.276.s1.nabble.com/GE-doubt-tp7605611p7605623.html

(5,5) gives 5 utility to individual 1
(0,0) gives  0 utility to individual 2

and there is 5 unit of y still available in the economy , with its price equal 0.

If any person demand good y it neither effect individual utility and nor budget constraint.

So competitive equilibrium  (5,5+e) (0, 5-e) where e belongs to [0,5]