Colette and Boris both consume the same goods in a pure exchange economy.Colette is originally endowed with 9 units of good 1 and 6 units of good 2.Boris is originally endowed with 18 units of good 1 and 3 units of good 2.They both have the utility function U(x₁, x₂)= x^1/3₁x^2/3₂.If we let good 1 be the numeraire, so that p₁ = $1, then what will be the equilibrium price of good 2? A)$2 B)$12 C)$1 D)$6 E)$3

Question

Quizplus · Accepted Answer

The Answer of Colette and Boris both consume the same goods in a pure exchange economy.Colette is originally endowed with 9 units of good 1 and 6 units of good 2.Boris is originally endowed with 18 units of good 1 and 3 units of good 2.They both have the utility function U(x₁, x₂)= x^1/3₁x^2/3₂.If we let good 1 be the numeraire, so that p₁ = $1, then what will be the equilibrium price of good 2? A)$2 B)$12 C)$1 D)$6 E)$3

Colette and Boris Both Consume the Same Goods in a Pure