2. Consider an economy that consists solely of Apples and Bananas. Jane is endowed with 30 apples and 10 bananas while Tarzan is endowed with 10 apples and 30 bananas. Let Jane and Tarzan have the same utility function Uj = In(a; ) + In(b; ) where a; is the number of apples and bi is the number of bananas. a) What does the Edgeworth box look like here? b) What is the Contract Curve here? Explain why the initial endowment is not Pareto efficient. c) What prices would Jane and Tarzan trade at in a competitive market (i.e. find the competitive market equilibrium)? Note: to make your life easier assume one of the goods is a numeraire good (set pi = $1). d) Suppose the government becomes concerned about people raised by wild animals and feel the outcome from part (c) does not represent a fair outcome given Jane's refinement since she was raised in a civilized society. The government wants a final allocation where Jane has 25 apples and bananas and Tarzan has 15 apples and bananas. How could the government reallocate bananas to achieve that outcome? (Note: Don't just give the number of bananas explain the reallocation method too.) e) Explain why the government would have a difficult (impossible?) time achieving the outcome in part (d) if the government could only reallocate apples