What will be the equilibrium price of good 2

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Colette and Hans both consume the same goods in a pure exchange economy. Colette is originally endowed with 15 units of good 1 and 12 units of good 2. Hans is originally endowed with 97 units of good 1 and 4 units of good 2. They both have the utility function U(x1, x2) = x1/3x2/3. If we let good 1 be 12 the numeraire, so that p1 = $1, then what will be the equilibrium price of good 2? How would you solve this?

Reference no: EM13219963

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