An economy is made up of two people. The utility functions are: u(x1) = x11x12 and u(x) = 2x21 + 2x22 - 11. The initial bundles are: W = (1,0) W2 = (0, 1) Although 2 suffers from 1's consumption of good 1, he cannot control it, nor does he realize that the total quantity of good 1 available is 1. a. Calculate a competitive equilibrium from w. Draw an Edgeworth box diagram to illustrate your answer. b. Find the locus of interior Pareto optimal points. c. Calculate prices p and p2, a per-unit subsidy s or tax t, and lump sum cash transfers T and T2 to bring the economy to the allocation 31 = (1/3,1/2),y2 = (2/3,1/2).