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5. Consider a two-consumer economy in which waA = (0, 1), w = (1,0) and, for each J = A, B, the utility function of

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5. Consider a two-consumer economy in which waA = (0, 1), w = (1,0) and, for each J = A, B, the utility function of consumer J is u (x1, (2) = x1 + 3.12 if x1 > 12. (a) Illustrate this economy in an Edgeworth box. (b) Derive a competitive equilibrium for this economy. (c) Derive a competitive equilibrium for this economy which has different prices and allo- cations than the one you found in (b)

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