N 382-2 Stovall 2016 Winter PS 7 This should be expressed an equation that solves for CA as a func- tion of nA and a. State how Bob's bundle is found, given this equation. (b) (15 pts) To illustrate how changes in o affect the efficient allocations, draw an Edgeworth box and sketch the contract curve for at least three different values of o. Describe what is happening as o increases, and give some intuition as to why this occurs. a = = provides a particularly useful comparison. (c) (5 pts) Given their initial endowment, can Aaron successfully persuade Bob to adopt any Pareto efficient allocation on the contract curve? If so, how? If not, what are his limitations