Alice and bob survive on hamburgers and salads alices


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)^2]sB
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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Microeconomics: Alice and bob survive on hamburgers and salads alices
Reference No:- TGS0663742

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