Question: Please handwrite the answer. 2. Now consider an economy between Alice and Bob where Alice has an endowment wa = (200,50) with Cobb- Douglas utility

Please handwrite the answer.

2. Now consider an economy between Alice and Bob where Alice has an endowment wa = (200,50) with Cobb- Douglas utility u (x4 ) = xax,, and Bob has an endowment we = (200, 100) with asymmetric Cobb-Douglas utility uB (xB) = xB(xB)3. (a) Solve for a competitive equilibrium price and allocation. (b) Verify that the allocation found in part (a) lies on the contract curve

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