2. (14 points) Consider an endowment economy that consists solely of Apples and Bananas just like the one discussed in lecture. Jane is endowed with 30 apples and 10 bananas while Tarzan is endowed with 10 apples and 30 bananas. Notice, then endowment is just like in lecture. Unlike lecture, let Jane and Tarzan have different utility functions. The utility function for Tarzan is: The utility function for Jane is: UT 4 ln(ar) + In(br) = U = In(as) + ln(bs) where a, is the number of apples and b; is the number of bananas consumed by i = {T, J}. (a) (3 points) What is the Contract Curve here? (b) (5 points) Give a sketch of the Edgeworthbox (including the contract curve and indifference curves). Use the diagram to explain what part of the contract curve we would expect to see trade take place. (c) (6 points) What prices would Jane and Tarzan trade at in a competitive market? Note: to make your life easier assume one of the goods is a numeraire good (set P = $1). Explain what the final outcome in the market will be after trade takes place.