Suppose now that individuals differ both in their endowments and preferences. Again assume that the amountof good 2 remains fixed but some of these heterogeneous agents experience anincrease in their endowments of good 1 (no one experiences a decrease). Assumethat good 2 is “a normal good” in no one’s preferences and is strictly inferiorfor at least one person whose endowment of good 1 has increased.
Provethat the relative price of the good in increased supply will still go up
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