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Posted: December 31st, 2020
Exchange, Microeconomics Assignment: I need help writing a research paper.
Question description
A little exchange economy has just two consumers, named Kirikou and Bouba, and two commodities, quiche and wine. Kirikou’s initial endowment is 6 units of quiche and 6 litres of wine. Bouba’s initial endowment is 15 unit of quiche and 3 litres of wine. Kirikou and Bouba have identical utility functions which are given by U(Q,W)= Q1/3W3/4. Let price of q equal Pq=1. As the numeraire.How much wine will Kirikou Consume? What about Bouba?I know the that Price of Wine equal 7. Just don’t understand the what the final allocation is.
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