# Tag Info

## New answers tagged pure-exchange-economy

### Finding Walrasian equilibria when Walrasian demands are not unique

let us first write the demand functions of individual $A$ and $B$ (x_A^d,y_A^d)(p_x,p_y,m_A)\in\left\{\begin{matrix} (\frac{m_A}{p_x},0) & ,\frac{p_x}{p_y}<1\\ (0,\frac{m_A}{p_y}) & , \...
• 41
Accepted

### Finding Walrasian equilibria when Walrasian demands are not unique

An equilibrium is usually defined as the combination of a price(s) and quantity(/quantities/allocation). Here $p_y = 1$, $x_A=0$, $y_A = 1$, $x_B=1$, $y_B=0$ is an equilibrium, $p_y = 1$ is an ...
• 28k
I rewrite the problem of maximization you wrote (I omit the endowments): $\max x_A + y_A \;\;\qquad (1)$ subject to $s x_B + y_B = \overline{U}\qquad (2)$. This problem can be seen as a problem of ...