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: u(x1 , x2) = In x, + In x2. However, there are twice as many type-h agents as type-g agents. The only factors of production are their labour. When a type-h agent chooses to spend a fraction a of his day producing meat and the rest producing berries then his output is ()], y2) = (20, 2(1 - @)). A type-g agent is more productive. When she chooses to spend a fraction p of her day producing meat and the rest producing berries then her output is (), , y, ) = (38, 12(1 - B)). Normalise the price of one unit of berries (good 2) to 1, and let p be the price of one unit of meat (good 1). Which of the following statements is true? O a. Equilibrium price must satisfy 1 4. O d. Equilibrium price p must be equal to 1 or must be equal to 4