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Consider a two-person (1 and 2) two good (X and Y) exchange economy. The utility function...

Consider a two-person (1 and 2) two good (X and Y) exchange economy. The utility function of person i is given by

??=?????1−???Ui=xiaiyi1−ai

where xi and yi denote respectively person i's the consumption amount of good X and good Y, i=1, 2.              

Suppose the endowments and preference parameter of each person in the economy are given in following table:

                    Endowment of X    Endowment of Y    Preference Parameter (ai )

Person 1          41                          32                       0.6

Person 2            39                          30                       0.3

What is the value of marginal rate of substitution (of good X in terms of good Y) at the endowment point of the person who will end up being the seller of good X when they trade?

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