Question 2: Consumers A and B are two representative individuals living in an economy that produces two goods, F and W. Consumer A's preferences are represented by the following utility function HA :FAWA where F A and WA are A's consumption of F and W. In contrast, consumer B has pref erences such that she must have one unit of F for every 4 units of W. (a) What is the contract curve? Illustrate the contract curve in an Edgeworth box dia gram. (b) What is the relative price of F , PF/PW, in a competitive equilibrium? Question 1: Sarah and Jane are two representative individuals living in an economy that produces two goods, X and Y. Sarah's and Jane's utility functions are Sarah: us = 100XS 0.50.5 and Jane: uJ = 50X0.4y0.6 where Xs and Y's are Sarah's consumption of X and Y and XJ and YJ are Jane's con- sumption of X and Y. Suppose that the market prices of X and Y are $10 and $20 respectively while the total supply of X and Y are 58 units and 36 units respectively. Lastly, assume that Sarah's current income is $600 while Jane's income is $700. (a) Derive an expression for the contract curve. Illustrate this in an Edgeworth box dia- gram. (b) Determine the quantities of X and Y that Sarah and Jane will consume in a com- petitive equilibrium. Is the resulting allocation Pareto efficient? Explain. Add this equilibrium to your diagram for part (a)