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4. Assume that there are three consumers, A, B and C, and three goods, 1, 2 and 3. The consumers' initial endowments are w- =

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4. Assume that there are three consumers, A, B and C, and three goods, 1, 2 and 3. The consumers' initial endowments are w- = ,W A = (3, 3, 3), W = (Wi , W2, Wa ) = (6,6,6) and w = (wi, wa = (3, 3, 3). Suppose that their utility functions are given by u (@f,12 ,23 A A A u(of, 207, ) = min{xi, 7, "{} and u (x1,x2 x; ) =270, 3 a) Find the competitive equilibrium for this economy (i.e. the price vector and final consumption bundles). b) Is the competitive equilibrium Pareto optimal

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