Please answer 2) a & b. Clearly...

(1) Consider an Edgeworth box economy with two consumers with the following pref- erences and endowments. For consumer 1, ul (x,, x?) = (x;)"(x?)1-, and w1 = (1,0). For consumer 2, u2(*2, x2) = (x2)(x2)1-b, and w2 = (0,1). (a) Solve each consumer's utility maximization problem to find their demand func- tions. (b) Use the market clearing condition to find the price ratio in Walrasian Equilib rium. (c) Suppose a = b = 0.75. Draw the Edgeworth Box diagram for this economy showing the Walrasian Equilibrium allocation and each consumer's indiffer- ence curve passing through this allocation. Is the allocation Pareto Efficient? Is it Envy-Free? (2) Suppose the endowments from the previous problem are redistributed so that w1 = W2 = (0.5, 0.5). (a) Find the new Walrasian Equilibrium price ratio and allocation. (b) Draw another Edgeworth Box economy diagram showing the new Walrasian Equilibrium allocation and each consumer's indifference curve passing through this allocation. Is the new allocation Pareto Efficient? Is it Envy-Free