Answer to Question #76339 in Microeconomics for SHUBHAM SINGH

Question

1. Consider a pure exchange economy with 2 goods

(X and Y) and 2 consumers (A and B) having

utility functions

Consumer A u
A) yA, who is endowed with

(2, 6) of the commodities;

Consumer B u
BUB
who is endowed with

(4, 2) of the commodities.

Compute the market equilibrium price and

quantity combinations of the consumers that will

result in efficient allocation of resources.