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Ali's utility function is U(x1, x2) = x1x2 and Eda's is U(x1, x2) = x 1 1/3 x 2 2/3 . Ali's initial endowment is
Ali's utility function is U(x1, x2) = x1x2 and Eda's is U(x1, x2) = x11/3 x 22/3 . Ali's initial endowment is 0 units of good 1 and 20 units of good 2. Eda's initial endowment is 30 units of good 1 and 10 units of good 2. Set p1 = 1 and find a competitive equilibrium for Ali and Eda using Edgeworth box analysis. Find p2 and pareto-optimal goods allocation for each.
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