Consider a pure exchange economy with 2 agents and two goods, i=a,b. Both agents have the same utility function, Uj(yja,yjb)=yjayjb. The first agent has initial endowment (0,1) and the second agent has initial endowment (1,0) (a) Set good a to be the numeraire good in the economy. (b) Find the Walrasian equilibrium prices and quantities for each agent. (c) Argue that the Walrasian equilbrium is Pareto optimal. Consider a pure exchange economy with 2 agents and two goods, i=a,b. Both agents have the same utility function, Uj(yja,yjb)=yjayjb. The first agent has initial endowment (0,1) and the second agent has initial endowment (1,0) (a) Set good a to be the numeraire good in the economy. (b) Find the Walrasian equilibrium prices and quantities for each agent. (c) Argue that the Walrasian equilbrium is Pareto optimal