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Consider an exchange economy consisting of two people, A and B, endowed with two goods, 1...

Consider an exchange economy consisting of two people, A and B, endowed with two goods, 1 and 2. Person A is initially endowed with Wa = (0,9) and person B is initially endowed with Wb = (10,0). They have identical preferences, which are given by Ua,b (X1, X2) = (X1)^2 x X2 . Suppose that P2 = 1 . Under the competitive equilibrium, what is P1?

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