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please answer question #2 and show the work fConsider the following pure exchange economy with different consumer pref- erences and endowments (e.g.. (= (of.*)), and
please answer question #2 and show the work
\fConsider the following pure exchange economy with different consumer pref- erences and endowments (e.g.. (= (of.*)), and answer the following ques- tion: (a) Draw the Edgeworth box and the endowment point. (b) Find the contract curve yx = /(x), and plot it on the graph. (c) Find the Pareto optimal allocation and price ratio for the corresponding competitive equilibrium. (d) Is the Pareto optimal allocation a fair allocation? WhyStep by Step Solution
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