equilibrium effects
posted by Titan
. Consumers are named using real numbers, x, between 0 and 1. Each consumer is interested in buying at most one unit of a good. The reservation price that consumer x has for this good when fraction z of the population buys the good is given by r(x)f(z) where r(x)=1x and f(z)=10z. Suppose that the price of the good is 0.9.There are two possible nonzero equilibrium fractions of the population purchasing the good.
a. The smallest nonzero equilibrium fraction of the population purchasing the good is: (Enter your answer in the format x/x)
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