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Please draw the edgeworth box on paper or word and upload a pic of it. And solve all parts. 1. Consider two rational behaving consumers

Please draw the edgeworth box on paper or word and upload a pic of it. And solve all parts.

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1. Consider two rational behaving consumers A and B in a two good exchange economy. Their utility is given by U4 = :LH,LH and Up = rlBr_;B respectively. Their initial endowment is w4 = (5: 3) -and = (2:8). (i) What is the price ratio for which the market clears? Elabo- rate on the steps towards the solution [15 Marks] (ii) Sketch an Edgeworth Box showing the initial allocation and approximately the final allocation, the budget constraint and the indifference curves. [5 Marks]

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