1. Aanchal and Bradyn are two homo economicus engaged in exchange over sour snakes (x) and peanut butter cups (y). Their utility functions are given by the following: 3 Aanchal: uA = xAyA 1 3 Bradyn: ub = xByB Aanchal has an initial endowment of 5 peanut butter cups and 13 sour worms. Bradyn has an initial endowment of 10 peanut butter cups and 7 sour worms. a. What is Aanchal's marginal rate of substitution of peanut butter cups for sour worms (mrs4)? What is Bradyn's marginal rate of substitution of peanut butter cups for sour worms (mrs)? [15 Points] b. Using their marginal rates of substitution, find the equation for the contract curve (or efficient contract locus). [15 Points] c. What is Aanchal's utility at her initial endowment, (x4, ya)? Is her original allocation Pareto efficient? [5 Points] d. What is Bradyn's utility at her original allocation, (x?, y.)? Is her original allocation Pareto efficient? [5 Points]