Suppose that Mike has a perfect substitutes utility function U (b, w) = 6b + 24w and Paulina has a Cobb-Douglas utility function UF (b, w) = bw, where b is the quantity of beer and w the quantity of wine. The initial endowment is: Mike has 100 bottles of beer and 50 bottles of wine, Paulina has 300 bottles of beer and 50 bottles of wine. (a) Draw an Edgeworth box with beer (b) on the horizontal axis and wine (w) on the vertical axis, measuring Mike's consumption from the lower left corner of the box. Identify the endowment point in the Edgeworth box. (b) Determine the equation for the contract curve. (NOTE: For the above utility functions the marginal utilities are as follows: For Mike MU, = 6 and MU, = 24, and for Paulina MU, = w and MU,, = b). Is the initial endowment on the contract curve? Ex- plain why or why not. () What is the competitive equilibrium price of beer relative to wine? What is the equilibrium allocation of wine and beer