only problem 2 (some info given in problem 1)

Problem 1 (15 points total, 5 points each.) Consider an exchange economy with two goods, good 1 and good 2, and two consumers, A (Ana) and B (Bob). Anas preferences are represented by the following Cobb-Douglas utility function: \"49314::va ) = (115'1"')1($2A)2 and her endowment is em = (ref, to?) = (8, 2). Bobs preferences are represented by the Cobb-Douglas utility function vB(~'61,$2)= ($1322)(~'6B)1 and his endowment is 003 (wlw ,w 23) (2,8). (l) Draw an Edgeworth box describing this economy. Show in your Edgeworth box the set of fea- sible allocations that Pareto dominate the initial endowment (these are the feasible allocations that can be reached through voluntary trade) and mark the endowment point. (ii) Derive the set of all feasible Pareto efcient points, and plot it in the same Edgeworth box. Denote which points represent the contract curve. (iii) Compute the competitive equilibrium prices and the associated allocation of the two goods. Problem 2 (15 points total, 5 points each.) Consider the same endowments than question 1, but with preferences now represented by the following utility functions: \"1403142312\": 2(331) + 4(332) \"3(E1gmgl (fszB) (i) Draw an Edgeworth box describing this economy. Show in your Edgeworth box the set of fea sible allocations that Pareto dominate the initial endowment (these are the feasible allocations that can be reached through voluntary trade) and mark the endowment point. (ii) Derive the set of all feasible Pareto efcient points, and plot it in the same Edgeworth box. Denote which points represent the contract curve. (iii) Compute the competitive equilibrium prices and the associated allocation of the two goods