Net demands x2 p1(x1-1)+p2(X2-2)=0 At prices(p1”3p2”) the consumer consumes her endowment: net demands are all zero p1X1+p2X2=p11+p202 =m1
Net Demands x2 x1 p1 (x1 −1 ) + p2 (x2 −2 ) = 0 x2 *=2 x1 *=1 At prices (p1”,p2”) the consumer consumes her endowment; net demands are all zero. p1 x1 p2 x2 p1 1 p2 2 " " " " + = +
Net demands x2 p1(x1-1)+p2(X2-2)=0 Price-offer curve contains all the utility-maximizing gross demands for which the endowment can be exchanged
Net Demands x2 1 x1 2 p1 (x1 −1 ) + p2 (x2 −2 ) = 0 Price-offer curve contains all the utility-maximizing gross demands for which the endowment can be exchanged