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Topic: Question 5.19 (Scarf)
Conf: Chapter 5, General Equilibrium, Msg: 13510
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 10/21/2003 10:06 AM

Question 5.19 (Scarf) Martin Caley MCaley martin.caley@economics.treasury.gov.im Person 1 is not interested in good 3 so draw a diagram showing a representative indifference curve in (x1,x2). Fairly clearly Person 1's demand is that x1=x2, their income is p1 so write down their demand vector in terms of p1 and p2. Do the same thing for Persons 2 and 3 and follow the hint on page 526.