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5. Consider two equally skilled economists, XiaoLan (XL) and XiaoFang (XF). XiaoLan lives in Beijing and XiaoFang lives in Shanghai. Beijing has higher house rental

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5. Consider two equally skilled economists, XiaoLan (XL) and XiaoFang (XF). XiaoLan lives in Beijing and XiaoFang lives in Shanghai. Beijing has higher house rental price than Shanghai but lower price on food (both on a per unit basis). Assume that the only goods that XiaoLan and XiaoFang consume are housing and food, and they have ordinal utility functions UUE: f) = r1 losUt) + (1 0')10s(f)= with 0

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