Question 1. (10 marks) Consider a pure exchange economy in which households have strictly convex preferences represented by kam) = (x114 10)1/2(sz 10W and 1 1 UB(x131x28) = (x13)5(x23)5 Consider each of the following initial endowments ((elA, 92A), (.913, 923)) of the two goods, a) ((30,60), (70,40)) and b) ((10,113), (90:90)) i) (6 marks} For each case, show whether the initial allocation is efficient. Do this both algebraically, and by sketching the initial allocation in an Edgeworth box including each households' indifference curves through the point. ii) (4 marks} For each case, find the competitive market equilibrium if one is feasible. What would the new allocation be? Draw a new Edgeworth box with both the initial allocation and the market equilibrium allocation you found (include the budget line, and the indifference curves through the allocations)