Question: 3. Edge and Worth have preferences represented by UE = Cic2 and UW = CIC2. Their endowments are el = (10,0) and ew = (10,

3. Edge and Worth have preferences represented by UE = Cic2 and UW = CIC2. Their endowments are el = (10,0) and ew = (10, 10). The formula for the contract curve is 2c5 = c5 What price ratio P = p2/pi is a market equilibrium price ratio? Is the equilibrium market outcome Pareto efficient? Which good is more scarce? Which good has a higher price? What quantity of good 1 and good 2 does Worth consume? Relate your answers to the claim that 'high prices are incentives to conserve scarce resources

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