Suppose Jack and Jill have the same (convex) preferences:

U ( C , F ) = C*F^2

Where F is the quantity of food and C is the quantity of clothing

Jack and Jill have endowments:

Jack: 8 Clothing, 2 Food

Jill: 2 Clothing, 8 Food

a). Suppose Jack trades 3 units of Clothing for 3 units of Food from Jill. Is the new allocation Pareto Efficient? Does the new allocation represent a competitive equilibrium?

b). What if Jack trades 4 units of Clothing for 2 units of Food from Jill. Is the new allocation Pareto Efficient? Does the new allocation represent a competitive equilibrium?