Question

9. Consider an exchange economy where A has endowment x = 10 & y = 20,...

9. Consider an exchange economy where A has endowment x = 10 & y = 20, and B has endowment x = 50 & y = 5. Both A and B have u(x,y) = xy. The price of x is $5 and the price of y is $12. At these prices consumer A has a demand for x of _____ and consumer B has a demand for x of _____.

(a.) 29; 33

(b.) 29; 31

(c.) 27.5; 33

(d.) 27.5; 31

10.Consider the exchange economy in problem 9 again. At the same prices, the aggregate demand for good x is ______ and the aggregate supply of good x is _____.

(a.) 62; 62

(b.) 62; 60

(c.) 60; 60

(d.) 60; 62

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9. Option B) 29;31 is correct

10. Option C) 60;60 is correct

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