microeconomics

general equilibrium

1.) Individual A and B have the following preferences: m = (3:414) - (mi? and as = (3:19) - (3:21;). Their endowments are given by M4 = (3,0) and 0.23 = (0,3). Solve for [and graph) competitive equilibrium and the contract curve. 2.) Individual A and B have the following preferences: HA = ln(a:h) + ln(:c2A) and as = ln(:z:}3) +ln(:1:23). Their endowments are given by 0.)\"; = (2, 6) and tag = (2,4). Solve for (and graph) competitive equilibrium and the contract curve. 3.) Now resolve problem 2 but replace individual A's preferences with EA = 3,1433% +3323. That is, individual B has a positive externality on individual A