What is the equilibrium price ratio, Microeconomics

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What is the equilibrium price ratio

Problem

Suppose there is a pure exchange economy with two goods, A and B. The utility function for consumer i is U(A,B) = A₁^0.5B₁^0.5. The utility function for consumer 2 is U(A,B) = A₂^0.25B₂^0.75. Consumer 1 is endowed with 30 units of A and 70 units of B. Consumer 2 is endowed with 75 units of A and 25 units of B.

a.) What is the contract curve?

b.) What is the equilibrium price ratio?

c.) What is the optimal bundle?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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