Question
Alice (A) and Bob (B) have an endowment of goods xx and yy, with Alice's endowment...
Alice (A) and Bob (B) have an endowment of goods xx and yy, with Alice's endowment being (ωxA,ωyA)=(3,6)(ωAx,ωAy)=(3,6) and Bob's endowment equals (ωxB,ωyB)=(3,9)(ωBx,ωBy)=(3,9). Alice's utility is given by uA(xA,yA)=x2AyAuA(xA,yA)=xA2yA, while Bob's utility is uB(xB,yB)=xBy2BuB(xB,yB)=xByB2. Find the competitive equilibrium.
Select one:
a. xA=26/7,yA=13/3,xB=16/7,yB=32/3,px/py=14/6xA=26/7,yA=13/3,xB=16/7,yB=32/3,px/py=14/6
b. xA=16/7,yA=13/3,xB=26/7,yB=32/3,px/py=3/7xA=16/7,yA=13/3,xB=26/7,yB=32/3,px/py=3/7
c. xA=16/7,yA=32/3,xB=26/7,yB=13/3,px/py=7/3xA=16/7,yA=32/3,xB=26/7,yB=13/3,px/py=7/3
d. xA=26/7,yA=13/3,xB=16/7,yB=32/3,px/py=3/7
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