Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries). There are two types of agents, h and g, and they have the same preferences over consumption, represented by the utility function: Mm, 332) : 111331 +1n :32. However, there are twice as many type-h agents as typeg agents. The only factors of production are their labour. When a typeh agent chooses to spend a fraction ac of his day producing meat and the rest producing berries then his output is (31?, y?) = (20:, 2(1 7 (1)). Atype-g agent is more productive. When she chooses to spend a fraction ,80f her day producing meat and the rest producing berries then her output is (yiy') : (3, 12(1 6)). Normalise the price of one unit of berries (good 2) to 1, and letp be the price ofone unit of meat (good 1). Which of the following statements is true? 0 a. Equilibrium price must satisfy 1 g p S 4. O b. Equilibrium price must satisfyp 4. C) d. Equilibrium pricepmustbeequaltolormustbeequalto4