c) Assume an economy with two people A and B, consuming two goods X1 and X2 with utility functions U^(X1,XA2)=X3/5x2/5 and UB (X1,X82) = X3/5x2/5 and endowments W = (7,5) and WB = (3,7). The corresponding goods prices are P and P2 B1 B2 1) Find the competitive general equilibrium for this economy, that is, P/p, XA1, X2, XB1 and XB1 ii) Find the equation of the budget line of each person at the optimal bundle and the values of (XA1, 0), (0,XA2), (XB1, 0) and (0, XB2). [10 marks] iii) Given the initial auctioneer prices of X and X2 are P = $12 and P2 = $4, find the initial values relative prices, X1 and X2, that is, P/po, X1, X2, X1 and X81. Also find the equation of the A1 budget line of each person at their initial optimal bundles and the values of (X A1, 0), (0,XA2), (XB1, 0) and (0,X82). [8 marks] iv) Using prices, total demand and supply from part i) and ii), present the market condition existing in each of the 2 goods market separately. Do the conditions in each of the two market support the economic theory that a Walrasian equilibrium is a competitive market equilibrium where equilibrium must occur simultaneously with values of excess demand being zero? Justify your reasoning [4 marks] v) Using your answers from part i) to iii), draw fully and well labeled Edgeworth box showing both initial and optimal allocation with amount of utils enjoyed by each consumer. [6 marks]