Analyze the following questions.

consider a pure exchanged economy with two goods, x and y, and two consumers, c and d. assume that the two consumers together own 20 units of x and 20 units of y. The consumers' utility functions are perfect complements.

Question 1 Assume that your grandmother pays for your studies. You probably agree that this assumption is more realistic than most assumptions we make in economics given the cost of living and our "generous" financial support at UC Davis. Imagine the following story: You pay a visit to your grandmother to thank her for her truly generous support. She asks what path-breaking insights you have learned in 200A. After mentioning that the central topic of 200A is consumer theory you proudly tell her that you learned that when prices go up then demand may go up or down. She looks at you with some consternation and starts to wonder whether supporting your studies makes any sense. After all, she knew this all along without having studied 200A. Since you rely on her support, her doubts naturally alarm you. You desperately try to search your memory for something less trivial to tell her. You vaguely recall the "compensated law of demand": For any (p, w). (p', w') with w = p . x(p, w) we have (p' - p) . (x(p', w) - r(p, w)) so with strict inequality if r(p, w) # a(p', w'). (With this notation, pe R4+ is a price vector, where L is the number of commodities in the economy; w E R. denotes the consumer's wealth; a(p, w) denotes Walrasian demand at prices p and wealth w. Throughout, we assume that a(p, w) is single-valued in R' for any p and w.) a.) In order to discuss the "compensated law of demand" with your grandmother, you need a verbal interpretation of it. Give a verbal interpretation of the "compensated law of demand" b.) Your grandmother asks in what sense the "compensated law of demand" is a law. You recall the following proposition that we proved in class: Proposition: Suppose that the Walrasian demand function r(p, w) is homoge- neous of degree zero and satisfies Walras' law. Then r(p, w) satisfies the weak ax- iom of revealed preference if and only if it satisfies the compensated law of demand. We recall the weak axiom of revealed preference: The Walrasian demand function r(p, w) satisfies the weak axiom of revealed preference if for any (p, w) and (p', w/), if p. x(p', w) w'. Let's see whether you are able to prove the first direction of the proposition: If r(p, w) satisfies the weak axiom of revealed preference then it satisfies the compen- sated law of demand. I will guide you step-by-step through a proof: 1. Consider the case in which r(p', w) = r(p, w). This should be easy.4. Consider another pure exchange economy with two goods, a and y, and two consumers, C and D. Assume that the two consumers together own 20 units of a and 10 units of y. The consumers' utility functions are: uc(to; yc) = min{2xc; yc} UD(ID; UD) = min{:D; 2yD} (a) Represent the economy with the help of an Edgeworth box. 5 points (b) Find and mark in the Edgeworth box all the Pareto efficient allocations. 5 pointsProblem 3 Consider a pure exchange economy with two goods and two consumers, R and J with utility functions Up(x, y) = Uj(x, y) = min(x, y), and endowments of wa = (4, 1) and wy = (2, 1). Compute the competitive equilibrium for this economy. Calculate the transfers to and t, needed to support equal division (where both consumers consume (3, 1) ) as an equilibrium with transfers.OZ Ltd. is a New Zealand based publicly listed company. The CEO of OZ Ltd. is Mr. Phil Coulson. As of 30 June 2022.2 the equity accounts of OZ Ltd consisted of: 500,000 'A' ordinary shares, issued at $2 each, fully paid $ 1,000,000 80,000 6% non-cumulative preference shares, issued at $4 and paid 160,000 to $2 Options (25,000 at 85c each} 21,250 Retained earnin 258 000 The options were exercisable between 1 March 2023 and 3] March 2023. Each option allowed the holder to buy one 'A' ordinary share for $5.50. The following transactions and events occurred during the year ended 30 June 2023. 2022 July 31 The directors made the nal call of $2 on the preference shares. Aug 15 All call monies were received except those owing on 7,000 preference shares. Aug 31 The directors resolved to forfeit 7,000 preference shares for non-payment of the call. The constitution of the company directs that forfeited amounts are not to be refunded to shareholders. The shares will not be reissued. Oct 27 The company issued a prospectus offering 50,000 '3' ordinary shares payable in two instalments: $4 on application and $2 on 30 May 2023. The offer closed on 30 November. Nov 30 Applications for 55,000 '3' ordinary shares were received. Dec 12 The directors resolved to allot the 'B' ordinary shares after returning any excess application monies to the applicants. The shares were duly allotted. Dec 15 Share issue costs of $9,100 were paid. 2023 Mar 31 The holders of 20,000 options applied to purchase shares. All monies were sent with the applications. All remaining options lapsed. The shares were duly issued. May 15 The directors made the nal call of $2 on the 'B' ordinary shares. May 30 All call monies were received. Required: Prepare general journal entries (provide explanation for each entry} to record the above transactions. Use the Spreadsheet answer template provided in Assignment 2 les folder on stream to complete section A of Assignment 2. 1. (Bill points) Suppose IWD power plants are currently emitting 100 tons of pollution each. Assume the marginal cost of emissions is zero for each rm. But there is an external cost associated with pollution: MES; = 120. Pollution reduction {ahamment} costs for Firm 1 are M5141 = 3:41 and for Firm 1 are HERE = 2311. a. Find the marginal benet of emission functions for each rm using the MCA functions. h. Draw the marginal Mnefrt and marginal cost of emissions curves for each rm on the following graph with quantityr of emissions on the horizontal axis and S per ton on the vertical axis. c. Suppose new pollution standards are implemented that require each rm to reduce pollution to 50 tons. i. Show the effects of this policyr on a new graph. ii. What is the marginal cost of abatement for each fnro? iii. Calculate total abatement costs for each firm