Alice and bob survive on hamburgers and salads alices, Ask an Expert

Economics

Alice and Bob survive on hamburgers and salads. Alice's utility function is UA = hA(sA - 1) where hA and sA are her consumption of hamburgers and salads respectively.

Bob's utility function is UB = (hB - 1)²sB where hB and sB are his consumption of hamburgers and salads respectively. Let p be the price of hamburgers measured in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six salads and two hamburgers. Find the competitive equilibrium.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91273739

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