Question: There are two goods, with quantities denoted by x and y. The total amounts available to Alex and Bob together are x and y, and

There are two goods, with quantities denoted by x and y. The total amounts available to Alex and Bob together are x and y, and these quantities satisfy x = y. The utility function are: (, ) = min{, } (, ) = +

a) Determine the set of Pareto allocations.

b) Assume that Ammar initially owns the bundle (xA,yA) = (9, 4) and Bob initially owns the bundle (xB,yB) = (7, 12). Determine all the Walrasian equilibria.

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