A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3). Person B is endowed with (480,180) and has a utility function Ub(Xb,Yb)=X^(1/3)Y^(2/3).
Draw an edgeworth box showing the following: The initial endowment, the IC that go through the initial endowment for each consumer, the CE point, the IC’s through that point for each consumer, and the budget constraint from the competitive equilibrium price.