Q 13

If allocation x is a competitive equilibrium at prices p and if everybody likes his bundle in allocation y better than his bundle in allocation x, then the total value of allocation y at prices p exceeds the total value of allocation x at prices p.

Q 14

If the initial endowment is on the contract curve, then there must always be a competitive equilibrium in which no trade takes place.

Q 15

Jack Spratt's utility function is U(F, L) = L. His wife's utility function is U(F, L) = F. If Jack's initial endowment is 10 units of F and 5 units of L and if Jack's wife's initial endowment is 6 units of F and 10 units of L, then in an Edgeworth box for Jack and his wife, an allocation of F and L will be Pareto optimal only if it is at a corner of the box.