Consider a world with two goods, 1,2, many type As and an equal number of type of Bs.

equal number of type Bs. Assume the endowments of each A are (17, 3) and each B are (3, 7), and assume that the utility function for either an A or a B is u(:1:1, x2) = $1372. (i) As carefully as you can, draw the Edgeworth rectangle for this exchange economy (put good 1 is on the horizontal axis). Draw the A and B indifference curves that pass through the endowment point, and the A and B offer curves. Label the endowment point E and the competitive equilibrium 0. (ii) In a new diagram, redraw the Edgeworth rectangle to illustrate the equilibrium in which the Bs have a monopsony in the good they are buying. Assume the BS do not have the power to practice price discrimination. Label the equilibrium Y and label all the lines in your diagram. (iii) In a third diagram, redraw the Edgeworth rectangle to illustrate the equilibrium in which the As have a monopoly in the good they are selling, and the As are able to practice perfect price discrimination. Label the equilibrium Z and label all the lines in your diagram