I was wondering what would happen in an economy with more than 2 agents and i found the next problem.
Consider a Pure Exchange Economy between three agents (A, B and C).
The function of agent A is Ua = ln (Xa) + ln (Ya) and its endowment is (Xa, Ya)= (2,3)
The utility function of agent B is Ub = ln (Xa) + 2 ln (Ya) and its endowment is (Xb, Yb)= (3,2)
Finally, the agent C only consumes X in such a way that its utility function is Uc= Xc and its endowment is (Xc, Yc)= (0,10)
a) Under this context, what would be a competitive equilibrium?
b) Find the equilibrium normalizing Px=1