Consider an exchange economy with two people, A and B, and two commodities, food (x) and water (y). A's and B's preferences are described, respectively, by the following utility functions: ua(Xa, Ya)= X^2aYa, MRSa(Xa, Ya)=2Ya/Xa
ub(Xb, Yb)=XbY^2b, MRSb(Xb, Yb)=Yb/2Xb

Suppose there are 6 units of x and 6 units of y overall.

1. Draw an Edgeworth box for this economy.
2. Determine whether each of the following allocations is (i) feasible, (ii) Pareto efficient

a. ( (2,4), (4,2) )
b. ( (4,2), (2,4) )
c. ( ( 8 / 3 , 1 ), ( 10/3 , 5 ) )

At river bank, checking account customers earn 0.75% interest a month on their account balances, pay no service fees for writing checks, and pay a monthly $2.00 financial charge. calculate the income earned in one month on the checking account for a customer with an account balance of $1,000. a. $4.25 b. $5.50 c. $6.75 d. $7.25 checking account earnings at baker’s bank are expressed by the equation: i = -0.09x + 10.2. while the earnings at elite bank are modeled by: i = -0.02x + 7.5. in both cases, x is the number of checks written. at what number of checks will elite bank start generating more checking account income than baker's bank? a. 12 b. 25 c. 39 d. 42 emilio’s checking account had a balance of 728.32 at the beginning of the week. he wrote checks for the following amounts throughout the week: $99.48, $33.50, $18.23, and $72.05. he also deposited his paycheck in the amount of $1,109.90. what is his account balance at the end of the week? a. $1,192.35 b. $1,222.86 c. $1,540.52 d. $1,614.96