Suppose the utility functions for consumers A and B are given by

u^A(x₁,x₂)=x₁x²

u^B(x₁,x₂)=x₁+logx₂

and their endowments are

^A= (₁^A,₂^B)

^B= (₁^B,₂^B)

Denote market prices of good 1 and good 2 byp1andp2,respectively.

(a) Find their Marshallian demands.

(b) Find equilibrium prices in this market. [Hint: Use Walras' law and pick your choice of numeraire.]

(c) How does consumer B's equilibrium consumption of good 2 change if consumer A's endowment of good 1 changed, all else equal?