=+B. Suppose that the tastes for individuals 1 and 2 can be described by the utility functions

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=+B. Suppose that the tastes for individuals 1 and 2 can be described by the utility functions u 1 5 x1 a

x2 112a2 and u 2 5 x1 b

x2 112b2

(where a and b both lie between 0 and 1). Some of the following questions are notationally a little easier to keep track of if you also denote E1 5 e1 1 1 e1 2

as the economy’s endowment of x1 and E2 5 e2 1 1 e2 2

as the economy’s endowment of x2

.

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