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Consider an economy with 2 persons and 2 goods. The utility functions of the 2 persons are UA =XiAX2 ; UB =(X13Xil23+ 5) 2 and the initial endowments are given to be WA=(6, 2) and WB=(2, 6) (a) Draw Edgeworth Box and show the initial endowment of the economy. (b) Find the set of Pareto efficient allocations and show your result on the Edgeworth box. (c) Find the competitive equilibrium of this economy.
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