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Competitive equilibrium allocation. Consider the following Utility functions: Consumer A: InxA -eA . budget XA +p(XA -eB)= I Consumer B: Inxs -eB , budget XB

Competitive equilibrium allocation.

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Consider the following Utility functions: Consumer A: InxA -eA . budget XA +p(XA -eB)= I Consumer B: Inxs -eB , budget XB +P(XB-eA)=I 3.1 Find the utility-maximizing consumption bundles for Consumer A and Consumer B 3.2 Is the allocation you found in 3.1 efficient? Explain precisely why not. Find an efficient allocation for A and B. 3.3 Suppose that A consumes her part of an efficient allocation. What would it be best for B to do

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