Question: Question 17 4 pts 2 Consider two consumer, h = 1, 2, with preferences U : 111(32) T' where 33'- is consumption, 5 21% is

Question 17 4 pts 2" Consider two consumer, h = 1, 2, with preferences U : 111(32") T' where 33'- is consumption, 5 21% is income, and 313 is skill level. Assume that 31 = 1 and 32 = 2. (i) Consumer 1 is allocated consumption 31 : 1 and income zl : 1. Consumer2 is allocated consumptionm2 : 2.713. What is the maximum income 2 can earn before incentive compatibility is violated? Question 18 6 pts {ii} Combine the incentive compatibility constraint and the aggregate resource constraint ( 31 + 22 = 5.5-1 + :32) to solve for 2:1 and 22. If 31 = 2,7183 and 5:3 = 7,3391, what is the implied value of 21

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