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Question 1 An economy has two agents, A and B, and two goods $1 and 9:2. The utility functions and endowments of the agents are given by: was) = mm\"; mass) = (was e\" = (etc?) = (2, 3) e3 = (565?) = (3, 2) Suppose A and B trade on a Walrasian market as perfect competitors. Let the price of good 2 be red at 1, and the price of good I be p. (a) Find A's demand for good 1 as a function of p. Call this xp). (b Find B's demand for good 1 as a function of p. Call this map). (c (d (e At this equilibrium, is the allocation of goods between the two agents Paretcsefcient? Find the marketclearing price of good 1. Call this 19*. Explain why the market for good 2 must also clear at prices (19*, 1). ) ) ) ) How do you know