Question: 2 Two consumers Ron and David together own 1000 baseball cards and 5000 Pok emon cards Let xR denote the quantity of baseball cards owned

2 Two consumers Ron and David together own 1000 baseball cards and 5000 Pok emon cards Let xR denote the quantity of baseball cards owned by Ron and yR denote the quantity of Pok emon cards owned by Ron Similarly let xD denote the quantity of baseball cards owned by David and yD denote the quantity of Pok emon cards owned by David Suppose further that Rons utility function is UR xRyR and Davids utility function is UD xDyD Finally suppose the endowment is such that xR 800 yR 800 xD 200 and yD 4 200 a Draw an Edgeworth box that shows the initial allocation in this economy b Show that the current allocation of cards is not economically efficient c Assuming the price of y is one find that equilibrium price of x d Find the Pareto optimal solution that occurs in this economy when the consumers trade at the equilibrium price you found Mark this new point on the graph you drew before or on a new one

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