Answer to Question #289846 in Microeconomics for Alemu

Question

An exchange economy, comprising consumer 1 and 2 each with Cobb Douglas (CD) utility 

function 

 

( ) 

 

 

 

 

 and the initial endowments of fish and wheat available for each person to trade in a given 

period are: 

 ( ) ( )

 ( ) ( )

 

a) Find the competitive equilibrium demands of person 1 and 2 for each good?

Answer 1

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