What is the effect on the equilibrium price of good 2


Consider an economy with two goods and two consumers with preferences

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a. Draw the Edge worth box for the economy.

b. Display the equilibrium in the Edge worth box.

c. What is the effect on the equilibrium price of good 2 relative to good 1 of an increase in each consumer's endowment of good 1 by 1 unit?

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Econometrics: What is the effect on the equilibrium price of good 2
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