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Hi, thank you for answering this question. Now assume there is, in addition to the consumers from above, a third consumer with o u3(x1,x2) =

Hi, thank you for answering this question.

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Now assume there is, in addition to the consumers from above, a third consumer with o u3(x1,x2) = 3:131 + 25132 and e3 = (10,10). (c) At which prices is the endowment of the third consumer one of the bundles in her demand set? (d) Is the allocation 5?: = (i1, 332, 933) = ((0, 7.5), (10, 7.5), (10, 10)) in the core? (e) Is the allocation 5: : ($233233) : ((1,1),(9,14),(10,10)) in the core? A2 (30 points) Consider an exchange economy with 2 consumers whose preferences and endowments are represented by: a u1(:1,:c2) = ($2)2 and 61 = (5,0) 0 u2(m1,$2) = (m1)%(m2)% and 62 = (5,15) (a) Characterize the set of all Pareto efficient allocations. [6] (b) Find all Walrasian equilibria (please report both equilibrium price vector and allocation, you can restrict attention to p >> 0). [10]

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