In: Economics
Assume in the market with two consumers, Chloe and Oliver. Chloe is endowed with 9 units of good 1 and 6 units of good 2. Oliver is endowed with 18 units of good 1 and 3 units of good 2. They have the same utility function U(x1, x2) = x11/3x22/3. If we let the price of good 1 is $1, then what will be the equilibrium price of good 2?
a. $2
b. $12
c. $1
d. $6