Econ 393.There is simillar questions but instead it is above not below.

1. (two marks for each part) Consider a world with two goods, 1, 2, many type As, and an equal number of type Bs. Write the endowments of each A as (614,624) and each B as (61 614,62 63\"), where the total endowments for an A, B pair are (61, e2). Assume everyone has the utility function u(x1, x2) = $1372; and the endowment point is BELOW the diagonal of the Edgeworth rectangle (good 1 is on the horizontal axis). (i) Prove that, in this setting, the Pareto efcient allocations lie along the diagonal of the Edgeworth rectangle. (ii) Derive the equation for B's offer curve. (iii) In the competitive equilibrium which good are the As selling and which good are they buying? Describe how you would nd the equilibrium in which the As have a monopoly in the good they are selling