Q3 (40 points) Consider a general equilibrium endowment economy with two agents, Adam (A) and Bob (B). The endowment is: ( wH , wit ), ( w ], w ? ) = 1 (2, 2 ), (5, 5) } Both agents are having quasi-linear preferences, such that UA(24, 14) -2 24 +23 UB( x], 1) = 2 21 + 23 5 ** Part a (10 marks) What are the vertices of the Edgeworth Box? ** Part b (10 marks) Find the contract curve. Hint: The MRSs of the two ageents are: IMRSA = (24)-1/2 IMRSBI = (23)-1/2 and along the contract curve, the two MRSs are equal and that the market clearing conditions must be satisfied. ** Part c (20 marks) Find the competitive equilibrium price ratio p