Consider an exchange economy with two people, A and B, and two commodities, food (x) and water (y). A's and B's preferences are described, respectively, by the following utility functions....

1. Consider an exchange economy with two people, A and B, and two commodities, food (x) and water (y). A's and B's preferences are described, respectively, by the following utility functions: u' (x , y ) = (x4 ) (y*), MRS4 (x4, V4 ) - 2y ub (x , yB ) = (xB)(yB)2, MRSB (xB, yB) =- 2x B Suppose there are 6 units of x and 6 units of y overall. Draw an Edgeworth box for this economy. Determine whether each of the following allocations are (i) Pareto efficient and/or (ii) envy-free: a. ((2,4),(4,2) ) b. ((4,2),(2,4)) C . 5 ) ) Next, suppose the resources were initially allocated between the two individuals. In particular, suppose A is endowed with w = (1,5) and B is endowed with @ = (5,1) . Which of the allocations in (a)-(c) are individually rational