Multiple Choice
Teresa and Jean-Pierre both consume the same goods in a pure exchange economy.Teresa is originally endowed with 9 units of good 1 and 6 units of good 2.Jean-Pierre is originally endowed with 91 units of good 1 and 14 units of good 2.They both have the utility function U(x1, x2) = x1/31x2/32.If we let good 1 be the numeraire, so that p1 = $1, then what will be the equilibrium price of good 2?
A) $10
B) $20
C) $2
D) $1
E) $5
Correct Answer:

Verified
Correct Answer:
Verified
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