Question 2 Consider an economy where there are only two goods, X and Y. George has the following preferences over his consumption of these two goods, X, and Y, U.(Xc,YG ) = X25YUS Martha's preferences over these two goods are given by UM (X M , YM ) = 2XM + YA where X and Y, denote her consumption of the two goods. George and Martha's endowments are given by Xc=30, Yc=20, XM =20 and Yw =10. (a) What is George's marginal rate of substitution? (3) (b) What is Martha's marginal rate of substitution? (2) (c) Derive an expression for the contract curve and draw it in an Edgeworth box. (You do not need to show the indifference curves) (5) (d) Are the initial endowments efficient? Explain. (3) (Marks: 3 + 2 + 5 + 3 = 13)