The income of the participants in a exchange economy is determined by:

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In an exchange economy, the income of the participants is determined by the relative prices of the two goods being traded as well as the individual endowments. The individual endowments determine how much of each good each person can initially produce, and the relative prices determine how much of each good they can consume in exchange for the goods they produce. Therefore, both factors are important in determining income in an exchange economy. The absolute prices of the goods being traded and levels of productivity may also affect income indirectly, but they are not directly responsible for determining income in an exchange economy.

The Income of the Participants in a Exchange Economy Is