Question: There are two commodities and three agents. Agent 1's utility function is u1=x1x2, agent 2's utility function is u2=x2 while agent 3s utility function is

There are two commodities and three agents. Agent 1's utility function is u1=x1x2, agent 2's utility function is u2=x2 while agent 3s utility function is given by u3=min(x1,x2). The endowments are : e1=(0,20), e2=(20,0), e3=(10,10)

a. Verify that Walras' Law holds in this environment

b. Find out competitive equilibrium prices and allocation of this economy. Is this allocation efficient? Explain.

c. Can One support x1=(15,15),x2=(0,10), and x3 = (15,5) as a competitive allocation for a suitable choice of endowments for the agents? Explain

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