Suppose two individuals in an exchange economy have identical utility functions given by Person A has an endowment of x = 9 y = 8,person B has one of x = 16 y = 2.The price ratio that will prevail in equilibrium is
A) px / py= 2.5.
B) px / py = 1.0.
C) px / py = 0.4.
D) px / py = 0.125.
Correct Answer:
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