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    Competitive Equilibrium Price Vector

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    Given a two-agent two-good pure exchange economy in which the indirect utility functions are , and and the corresponding endowments are and , compute the competitive equilibrium price vector and allocation and explain your calculations.

    For agent 1, the Marshallian demand function can be derived by ...

    Solution Summary

    This solution includes a detailed computation of the competitive equilibrium price vector and allocation and explain your calculations.

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