Question: Please help 1. Consider two rational behaving consumers A and B in a two good 1 exchange economy. Their utility is given by U A

Please help

1. Consider two rational behaving consumers A and B in a two good 1 exchange economy. Their utility is given by U A = mfogA and 1 1 U3 = 56%}?ng respectively. Their initial endowment is em = (7; 3) and 003 = (5;8). (i) What is the price ratio for which the market clears? Elabo- rate on the steps towards the solution [15 Marks] (ii) Sketch an Edgeworth Box showing the initial allocation and approximately the final allocation, the budget constraint and the indifference curves. [5 Marks]

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