2. The Second Fundamental Theorem of Welfare Economics says that
any point on the contract curve can be supported by a competitive
equilibrium. This question has you illustrate and explain this
argument. Start with an Edgeworth box diagram for a two-person, two
good economy. In your diagram assume that there is a total of 100
units of food and 100 units of clothing which will be split between
two people (Person A and Person B).
(a) Let’s say that the...