Consider a pure exchange economy with two individuals (A and B) and two goods (x and y).

The utility functions are given by UA(xA, yA) = min[xA, yA] UB(xB, yB) = min[xB, yB],

where xi and yi are the quantities of the two goods consumed by individual i = A, B. The total endowments are wx = 10 and wy = 5.

(a) Represent the indifference curves of both individuals in the Edgeworth box and find the Pareto set.

(b) Let the individual endowments be wA = (7, 2) and wB = (3, 3). Determine the equilibrium quantities and prices?

(c) What can we say about the equilibrium prices for other values of individual endowments?