There are two people in the economy george and harriet, Ask an Expert

Economics

There are two people in the economy, George and Harriet. George's utility function is:

UG = aG(bG)²

Where aG and bG are his consumption of ale and bread.

Harriet's utility function is

UH = aHbH

Where aH and bH are her consumption of ale and bread. George and Harriet are each endowed with 4 units of ale and 4 uits of bread. Find the market-clearing price (which is a messy fraction).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91273744

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