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Consider an economy with two agents, A and B, and two goods x1 and x2. Both agents treat x1 and x2 as perfect complements. Suppose the total endowment of x1 is 4 and the total endowment of x2 is 2. Which of the following allocations is not Pareto optimal?
1) A gets (1,1) and B gets (1,1).
2) A gets (2,1) and B gets (3/2,1)
3) A gets (1/2,3/2) and B gets (3,1/2)
4) A gets (3,2) and B gets (0,0).
The problem looks elementary and I'm stuck. Please hellp :(
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