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Consider a p Consider a private n x m economy

Consider a p Consider a private n x m economy: ({u'(x)}=11{e}=1), where profile of endowments, {e}", is such that e' E RV, and Li-, e' >> 0. Assume u'(x) : Rm H R is continuous, strongly increasing and strictly quasi- concave for each i = 1,.., n. Assume that the aggregate demand function satisfies the weak ariom of revealed preference. For this economy, prove there exists a unique Walrasian equilibrium price vector. (7) (b) Now suppose the above economy is expanded to include production, i.e., consider: ({u'(x)} , {e}_1, Yk, gik), where Yk is the set of production plans for firm k = 1, ...,K; gik is the ownership) share of kth firm owned by ith individual; 0

Feb 07 2020 View more View Less

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