Question 2 Draw a diagram and refer to it in your answers. An economy has two goods, x and y, and two consumers, A and B, described as follows: A: UA(xX) = min(xx); eA = (8,2). B: UB (xX) = XX; eB = (2,8). (a) Draw the Edgeworth box for this economy, and explain the shapes of the indifference curves of consumers A and B. (b) Describe the contract curve for this economy. (You should be able to describe the curve exactly without having to derive it mathematically). (c) Using a highlighter or a light coloured pencil, shade in on your diagram the equivalent of the "lens- shaped area" within which trade outcomes must lie. (d) Without working out, can you identify the competitive equilibrium for this economy? Explain in a few words