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5. Use the same parameters and utilities as you did for the previous short question about Arthur and Boudica . Boudica - because of of

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5. Use the same parameters and utilities as you did for the previous short question about Arthur and Boudica . Boudica - because of of her legend as a powerful warrior-queen - has take-it-or-leave-it power with respect to Arthur (who, although also legendary, made the fatal error of leaving his sword stuck in a stone). True or False & Explain: Boudica will offer (in round numbers ) 7 archers in exchange for 15 knights leaving Arthur with a post-exchange Pareto-efficient allocation of 27 Archers and 45 knights. 6. Aanchal and Bradyn are two homo economicus engaged in exchange over sour snakes (x) and peanut butter cups (y). Their utility functions are given by the following: Aanchal : uA Bradyn: 1 B XBY B Aanchal has an initial endowment of 5 peanut butter cups and 13 sour worms . Bradyn has an initial endowment of 10 peanut butter cups and 7 sour worms a. What is Aanchal's marginal rate of substitution of peanut butter cups for sour worms (mrs )? What is Bradyn's marginal rate of substitution of peanut butter cups for sour worms mrs)? b. Using their marginal rates of substitution , find the equation for the Pareto-efficient curve. c. What is Aanchal's utility at her initial endowment,( x , ye ) ? Is her origi - nal allocation Pareto efficient? d. What is Bradyn's utility at her original allocation ,( x , y ) ? Is her original allocation Pareto efficient? e. Graph the Edgeworth box depicting the exchange between Aanchal and Bradyn . Show their initial allocations , their initial indifference curves the Pareto-efficient curve, the Pareto improving lens, and each player's most preferred allocation . Briefly (one or two sentences ) explain your graph. f. Instead of her previous utility function, assume that Bradyn's utility function is given by the following VB (u (xA, YA ) , u (XB, VB) ) = xBy Explain how this function is different to Bradyn's utility function when she was a homo economicus . Explain further how it captures the idea of altruism and why we would call Bradyn ahomo generosus g. What is Bradyn's marginal rate of substitution of peanut butter cupsy(B) for sour snakes (xB)

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