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Question 2 Consider an economy with two agents, Bunter and Quelch, and two goods, apples and oranges. If Bunter consumes :33 units of apples and

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Question 2 Consider an economy with two agents, Bunter and Quelch, and two goods, apples and oranges. If Bunter consumes :33 units of apples and 93 units of oranges, his utility will be 1:. 3(13 3, y B) = 133 -yB. If Quelch consumes 1:9 units of apples and 19.9 units of oranges, his utility will be uQ(:cQ,yQ) = min'le: ye}- In this economy, Bunter owns all of the apple trees, and Quelch owns all of the orange trees. Before the two agents engage in trade to reach the Walrasian equilibrium, there is a chance that a blight will descend upon Bunter's apple trees. If there is no blight, Bunter will receive 24 units of apples; if there is a blight, Bunter will be left with only 2 units of apples, where 0

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