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Consider a one-consumer one-firm economy in which u(x) = (x z ) 3 (x q ) 2 , = 2 and f(z) = z. a)

Consider a one-consumer one-firm economy in which u(x) = (xz)3(xq)2, = 2 and f(z) = z.

a) Illustrate this economy in an Edgeworth Box

b) Derive the Pareto set of this economy.

c) Fix some Pareto-Efficient allocations from b) and derive a competitive equilibrium for this economy that generates these allocations.

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