Agent A is endowed with a car that he values at $200, and with $1,000 in cash. Agent B has no car, values A's car at $350, and is endowed with $1,000 in cash. Let's formally describe the utility functions for this problem. Agent i has utility over car and money equal to:

u_i = X_i + m_i

where m_i denotes the amount of money consumed by agent i. X_A equals zero if agent A does not consume the car, and 200 if he does. X_B equals zero if agent B does not consume the car, and 350 if he does.

1.What are the competitive equilibrium prices?

2.At any competitive equilibrium allocation, who gets the car?