There are 100 units of good 1 and good 2 in a economy. Consumer 1 and consumer 2 have 50 units of each good. Consumer 1 only wants good 1 whereas consumer 2 only wants good 2.
Note: Neither of these are lexicographic preferences.
Question: Find Walrasian equilibria
Here is what I have reached:
Can someone explain why red lines are WE..and why not F and G? And P is Pareto optimal I understand, but is it Walrasian equilibrium as well?
Is every Walrasian equilibrium Pareto optimal and every Pareto optimal point Walrasian equilibrium?