Math Help

February 28, 2024

It seems like you solved for x in part E under the constraint x = x and
got

a(px x + py y)
x=
px

So adding up “I equations for individual consumption of x as a function

of prices and initial endowments” should yield

X X a(px xi + py y )
i
xi =
px

From here, it’s pretty easy to arrive at

X X X
px xi = px ai xi + py ai y i

1
 X X X
=⇒ px x i − px ai x i = p y ai y i

X X  X
=⇒ px xi − ai x i = p y ai y i

X X
=⇒ px xi − ai xi = py ai y i

px X X
=⇒ xi − ai xi = ai y i
py

X
px ai y i
=⇒ =X
py xi − ai xi

X
px ai y i
=⇒ =X
py xi (1 − ai )

The problem states in part A that a + b = 1, so that

ai + bi = 1 =⇒ bi = 1 − ai

2
Whence,
X X
px ai y i px ai y i
=X =⇒ =X
py xi (1 − ai ) py xi bi