Question: General Equilibrium 2 (20 points) The utility for consumer 1 and 2 are: U1 (2], 27) = A[(2] ) + (2) 1 1/P U2(202, 2?)

General Equilibrium 2 (20 points) The utility for consumer 1 and 2 are: U1 (2], 27) = A[(2] ) + (2) 1 1/P U2(202, 2?) = BI(22) + (23) 611/6 a. Characterize the Pareto efficient allocation and contract curve (10 points). b. Characterize the competitive equilibrium if W1 = (3,0) and W2 = (0,4) (10 points)

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