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U A2 (30 points) Consider an exchange economy with 2 consumers whose preferences and endowments are represented by: u(x1, x2) = (x2)2 and e' =
U A2 (30 points) Consider an exchange economy with 2 consumers whose preferences and endowments are represented by: u(x1, x2) = (x2)2 and e' = (5,0) u? (.11, Q2) = (x1)} (x-2)} and e2 = (5, 15) (a) Characterize the set of all Pareto efficient allocations. (b) Find all Walrasian equilibria (please report both equilibrium price vector and allocation, you can restrict attention to p >> 0). U [6] [10]
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