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Question - Alex and Sam consume wings, W, and soda, S. Alex's utility function is Ua = WaSa, and Sam's is UsWs^0.5Ss^0.5. The initial endowments are Wa = 10, Sa = 20 and Ws = 20, Ss = 10. Put wings on the x-axis and soda on the y-axis.
a. What is Alex's MRS?
b. What is Sam's MRS?
c. Derive the condition that characterizes the contract curve.
d. Draw an Edgeworth box and graph the contract curve.
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