Identify the competitive equilibrium


Bob and Alice survive on the salads and hamburgers. 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 sB and hB are his consumption of salads and hamburgers respectively. Let p be the price of hamburgers calculated in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six salads and two hamburgers. Identify the competitive equilibrium. 

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Macroeconomics: Identify the competitive equilibrium
Reference No:- TGS0870524

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