Consider a two-good, pure exchange economy consisting of two clowns (blue shorts clown and red shorts clown) and two goods (clown cars and balloons). The clown in the blue shorts currently has 400 clown cars and 200 balloons, while the clown in the red shorts has 100 clown cars and 800 balloons. Denote xb 1 and xb 2 as the blue shorts clown's demand for clown cars and balloons, respectively. Denote xr 1 and xr 2 as the red shorts clown's demand for clown cars and balloons, respectively. The blue shorts clown has Cobb-Douglas preferences with = 3/4 and = 1/4. The red shorts clown has Cobb-Douglas preferences with = 1/4 and = 3/4. a) Find each clowns Marginal Rate of Substitution. [4 points] b) Find a function for the contract curve. [4 points] 9