3. Consider an exchange economy with two consumers A and B, and two goods (good 1 and good 2), whose preferences are given by: 1 1 HA($1,$2) =1n(931l+ 5111(32) and u13(331ai2) = 5111(921) + 111(532) and their initial endowments are: 6,4 = (10,4) and 63 = (6,10). (i) Find the competitive equilibrium ratio of prices 173% and the equilibrium consumption by the two consumers of the two goods. [Hint You can use your results from Q1 to derive the consumers' Marshalian demands. For consumer A, or =1 and = %. For B, its as =-21,-and f} = 1.] (ii) Find the set of Pareto-efcient allocations for this economy. Verify the rst welfare theorem here i.e. the consumption allocation you found in part (i) is Pareto-efcient. (iii) Can the allocation ccA = (12,6) and m5 = (4,8) be supported as a Walrasian equilibrium with transfers? If yes, nd the set of endowments that will make it an equilibrium. If no, explain