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1- Consider an economy with two consumers, A and B. There are two goods. Suppose the utility functions are UA(61, 62) : C1 + C2,

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1- Consider an economy with two consumers, A and B. There are two goods. Suppose the utility functions are UA(61, 62) : C1 + C2, UB(61,C2) : min {61, C32}' The endowments are 1 2 .._[0], 1]. a. Show the Edgeworth box for this economy, with the indifference curves corresponding to the endowment allocation. 13- Explain why it has to be the case thatpl > 0 and P2 > 0 if (P1, p2) E A is an equilibrium price vector. The oer curve for a consumer is a curve inRi that describes all consumption choices for the consumer that can result as one varies (P1 , p2) E A. C- Construct a new Edgeworth box (with the axes extended beyond the box) that shows the offer curves for consumers A and B, restricting attention to price vectors;D E R1 +. d- Conclude that this economy does not have a competitive equilibrium

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