Business
Business, 30.07.2021 20:20, francisco42002

Consider an exchange economy with two types of agents, A and B, and two goods, x and y. Preferences are given by u_A(x_A, y_A) = x_A + 6\ln(y_A) and u_B(x_B, y_B)=\ln(x_By_B). Suppose the government wants to reach the goal of x_B=5 with the competitive equilibrium by setting a redistribution r such that \omega_A=(10,r) and \omega_B=(0,20-r). Let p_y=1. Find r reaches the government's goal. Round your answer to 2 decimal points.

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Consider an exchange economy with two types of agents, A and B, and two goods, x and y. Preferences...

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