Consider the following endowment economy. Walter has a utility function ofuW(c1,c2) =2c1+c2and Jesse has a utility function ofuJ(c1,c2) =c1+3c2. Walter is en- dowed witheW= (0, 3)and Jesse's endowment iseJ= (3, 0). Please answer the following questions and label your graphs properly.

1. Define the competitive equilibrium for this economy.
2. Draw an Edgeworth box to illustrate this economy.
3. Using the Edgeworth box you drew in Part 2, label the set of individual ratio- nal allocations. (You do not need to characterize the set mathematically. Just indicate the set within the Edgeworth box.)
4. Using the Edgeworth box you drew inPart2.,label the set of Pareto optimal al- locations. (You do not need to characterize the set mathematically. Just indicate the set within the Edgeworth box.)
5. In the spirit of equality, the government wants both Walter and Jesse to con- sume(1.5, 1.5)in equilibrium. Is(1.5, 1.5)Pareto efficient? If not, explain why not in one sentence while providing a Pareto improvement. If it is Pareto effi- cient, characterize the set of transfers on initial endowments such that(1.5, 1.5)is implemented in equilibrium.