Calculate the demand function


"Consider a two-good exchange economy with two individuals, A and B. A's preference is represented by uA(xA_1, xA_2) = 0.3*ln(xA_1) + 0.7*ln(xA_2), and B's is represented by uB(xB_1, xB_2) = 0.8*ln(xB_1) + 0.2*ln(xB_2). A's initial holding is (wA_1, wA_2) = (10,4) and B's is (wB_1, wB_2) = (8,12).

Calculate the demand function for A?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Calculate the demand function
Reference No:- TGS059950

Expected delivery within 24 Hours