Adrienne and Stephen consume pizza, Z, and cola, C. Adriennes utility function is U A = Z

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Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne’s utility function is UA = ZACA, and Stephen’s is UA = Zs0.5 Cs0.5. Their endowments are ZA = 10, CA = 20, ZS = 20, and CS = 10.

a. What are the marginal rates of substitution for each person?

b. What is the formula for the contract curve? Draw an Edge-worth box and indicate the contract curve?

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