Question: Please answer all parts! Question 8 [8 points) Abdul's utility is U($A,yA:I = min{zd,y}, where 2A. and yd are his consumptions of goods :1: and

 Please answer all parts! Question 8 [8 points) Abdul's utility is

Please answer all parts!

U($A,yA:I = min{zd,y}, where 2A. and yd are his consumptions of goods

Question 8 [8 points) Abdul's utility is U($A,yA:I = min{zd,y}, where 2A. and yd are his consumptions of goods :1: and g respectively. Babette's utility function is U[$B,y3) : 235:3, where 35 and 3,513 are her consumptions of goods 2: and y. Abdul's initial endowment is zero units of y and 6 units of 2:. Babette's initial endowment is zero units of z and 10 units of y . '1. [3 marks] Draw the Edgeworth box with good 3 on the horizontal axis. The quantities of Abdul is measured from the lower left corner and the quantities of Babette is measured from the upper right corner. Mark the initial endowment and label it with E. Sketch two indifference curves for both agents. Don't forget to label the axis. 2. [5 marks] Find the Walrasian equilibrium prices and consumptions for Abdul and Babette by setting the good znumeraire and p the price of good 3;. Show your equilibrium point on your Edgeworth box and label it with X

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