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Write down an exchange economy model with two individuals, Adam and Eve, and two goods, cheese and wine, in which there is no consumption externality.

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Write down an exchange economy model with two individuals, Adam and Eve, and two goods, cheese and wine, in which there is no consumption externality. State and explain the key assumptions of the model. Using the model, answer the following questions: (3) Explain the concepts of a Walrasian equilibrium and a Pareto efficient allocation

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