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b) (2 points) An exchange economy has two goods (apples, bananas) and two types of agents (1, 2). Endowment of agent 1 is (3 bananas,
b) (2 points) An exchange economy has two goods (apples, bananas) and two types of agents (1, 2). Endowment of agent 1 is (3 bananas, 3 apples), and endowment of agent 2 is (5 bananas, 2 apples). Both goods are divisible goods, so that it is possible to consume fractions of each good (e.g. 2.44 bananas and { apples). Each type 1 agent's preferences are represented by the utility function (ab, a)) = mintz, x}}, where r, and , denote the agent's consumption of bananas and apples, respectively. Each type 2 agent's preferences are represented by the utility function U(a; ) = 5 mintap, a}} where my, and % denote the agent's consumption of bananas and apples, respectively. Use an Edgeworth's Box to depict the set of Pareto efficient allocations in this economy. Please capture consumption of bananas on the horizontal axis
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