Question: Please Answer all parts in full sentences: 5. [3] Consider a two-person endowment economy characterized by the Edgeworth Box below: 12 ICE IC'l 0,4 I]

Please Answer all parts in full sentences:

5. [3] Consider a two-person endowment economy characterized by the Edgeworth Box below: 12 ICE IC'l 0,4 I] a. [3] Print or sketch the diagram [make sure to include the endowment point and indifference curves} and add a contract curve to it. Explain the intuition behind the contract cunre. h. [3] Identifyr the core on your diagram. What is special about this set of points? c. [2] Add a Pareto optimal allocation to your diagram. Explain why you chose this point

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