Bert regards food and clothing as perfect 1-for-1 substitutes. Ernie regards them as perfect complements, always wanting to consume 3 units of clothing for every 2 units of food.
a. Describe the set of allocations that are Pareto preferred to the one given in Problem 1.
b. Describe the contract curve for that allocation.
c. What price ratio will be required to sustain an allocation on the contract curve?