Home » Consider a pure exchange economy with two individuals (A and B) and two goods (1 and 2). The utility functions are given by: UAfAM) = min{I1A: 932A}…

# Consider a pure exchange economy with two individuals (A and B) and two goods (1 and 2). The utility functions are given by: UAfAM) = min{I1A: 932A}…

how can I caculate the demand and clearning market with these numbers? I found it is a little bit difficult.

1. Consider a pure exchange economy with two individuals (A and B) and two goods (1 and 2). The utility functions are given by: UAfﬁAﬂM) = min{I1A: 932A} UB{\$1B,\$2B) = miﬂ‘litlB, 2332B} Denote by ml 2 (wlA,w13) and (U2 2 (w2A,w23) the total endowments of good 1 and 2, respectively. Normalize the price of good 1 to l and set p2 = p. (a) Determine the demand of consumer A and consumer B for good 1 and 2 as functions of p and w. (b) Determine the excess demand function of consumer A and of consumer B.(c) Determine the market clearing condition. ((1) Suppose that the endowments are as follows: wl = (8, 2) and {:12 = (l, 5). Whatis the relative price 3) that clears the market? What are the demands of the two consumers? (6) Suppose instead that the endowments are ml 2 (8, 2) and mg 2 (2, 4). What is the relative price 3} that clears the market?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Order your essay today and save 10% with the coupon code: best10