(1) Consider an exchange economy with two consumers and two goods. Suppose that consumer A's utility...

  

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(1) Consider an exchange economy with two consumers and two goods. Suppose that consumer A's utility function is given by u = min{1,2}, with the endowment of (w=6,w=10), and consumer B's utility function is given by B =+ with the endowment of (w=6,w=4). (a) Draw the Edgeworth box, where the origin for Consumer A is at the left-bottom corner and the origin for Consumer B is at the right-top.corner. Label all the key information carefully. (You can use the grid paper provided below.) (b) Indicate the initial endowment as E in the diagram. (c) Draw A's indifference curve (ICA) that goes through E. (d) Draw B's indifference curve (ICB) that goes through E. (e) Draw the contract curve in the diagram. (1) Consider an exchange economy with two consumers and two goods. Suppose that consumer A's utility function is given by u = min{1,2}, with the endowment of (w=6,w=10), and consumer B's utility function is given by B =+ with the endowment of (w=6,w=4). (a) Draw the Edgeworth box, where the origin for Consumer A is at the left-bottom corner and the origin for Consumer B is at the right-top.corner. Label all the key information carefully. (You can use the grid paper provided below.) (b) Indicate the initial endowment as E in the diagram. (c) Draw A's indifference curve (ICA) that goes through E. (d) Draw B's indifference curve (ICB) that goes through E. (e) Draw the contract curve in the diagram.