Answer question three please

Q Q u 2 . @ Q search commodity bundle (71, 2) that satisnes the feasibility constraint in ( a) : 12 = 9(21). Write down his constrained utility maximization problem and solve it by substituting $2 = 9(x1) into the utility function. How much of his leisure does he devote to producing food? [10 points] 3. [25 points] Consider a two commodity, two consumer exchange econ- omy. The utility functions and endowments of the two consumers are: UA = XAI + 2X A2, WA = (0, 12) UB = min {BI, XB2}, WB = (12, 0 ) . (a) Sketch this information An an Edgeworth box and show all the Pareto efficient allocations and all the core allocations. Since B's utility function isn't differentiable, calculus will not help, but a carefully drawn figure should suffice. [5 points] Let pi and p2 denote the market prices of the two commodities. Suppose we normalize p2 = 1. Assume pi > 0. This means that A's income is mA = 12 and B's income is mg = 12p1. (b) What is A's demand as a function of p1? (Do this for the three different cases: p1 0.5 and p1 = 0.5). Explain why there cannot be a competitive equilibrium with p1