2. Suppose ui($i) = as; and wf : 0 for both agents 27. (\"Ann only likes apples, Bob only likes bananas, Ann only has bananas, and Bob only has apples\") To make the model interesting, assume a); and a)? are both strictly positive. (a) For a given a); and a)? which allocations are Pareto optimal? (b) For a given to; and of, What are all of the competitive equilibria? 2 3. Suppose1 ui($i) = *(2 7 mil) 7 (2 7 3:3)2 for each agent i, and Mi 2 a); = 2 and ,2_1_ alw2O. (a) Argue that no allocation .7: With {13% 7E {13% can be Pareto optimal. (b) Argue that any allocation 3: with 33% = a7; is Pareto optimal. (c ) What are all of the competitive equilibria? LL '7: 'l 1Everywhere appears as a superscript here7 you should read it as a player label rather than an exponent