ECON302 TPS4: Edgeworth Suppose there are two consumers, A and B, and two goods, X and Y. The consumers have the following initial endowments and utility functions: WA= Wy = 2 UA(X, Y) = 2X + 3Y WY = 3 WB =8 UB (X, Y) = xly! a) Using a clearly and accurately labeled Edgeworth Box, illustrate: . the initial endowment, labeled "W" . both consumers' indifference curve through the initial allocation . the contract curve, and the core b) What is the marginal rate of substitution for consumer A at the initial allocation? c) What is the MRS for consumer B at the intial allocation? ECON 302 TPS Page 2 d) Is the initial allocation Pareto efficient? How do you know? e) Suppose the price of good Y is equal to 1. Calculate the price of good X that will lead to a competitive equilibrium