doubt:P.O and Gen eq

Posted by Mauli on Jun 05, 2013; 3:40pm
URL: http://discussion-forum.276.s1.nabble.com/doubt-P-O-and-Gen-eq-tp7581810.html

situation:An exchange economy is populated by three consumers: 1, 2, and 3. There are two goods—good x and good y. The consumers’ preferences are characterized (respectively) by
the three utility functions: u(1) = min{x, y}, u(2) = 2log(x) + y, u(3) = x + 2y
Total endowment of good x and y in the economy is 10 units each.


q1)Which of the following allocations is pareto efficient?
a)((1, 1), (1, 0), (8, 9))
b)((4, 4), (1, 2), (5, 4))
c) ((2, 2), (8, 0), (0, 8))
d)((1, 1), (0, 1), (9, 8))

q2)
Suppose the endowment is the pareto efficient allocation of the problem above. Then competitive equilibrium prices are
 a) (1, 1)
 b)(1, 3)
 c)(1, 4)
  d)None of the above
kindly tell me the approach to solve this question.