Question: Please show work 5. General Equilibrium 2 (20 points) The utility for consumer 1 and 2 are: Ul(x], x7) = A[(x] )P + (27)P]1/P U2(202,

Please show work 5. General Equilibrium 2 (20 points) The utility

Please show work

5. General Equilibrium 2 (20 points) The utility for consumer 1 and 2 are: Ul(x], x7) = A[(x] )P + (27)P]1/P U2(202, 27) = B[(x2)+ (23) 671/6 a. Characterize the Pareto efficient allocation and contract curve (10 points). b. Characterize the competitive equilibrium if W1 = (2,0) and W2 = (0,6) (10 points)

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