A.
b. Black line is from (0,0) to (0,16) because Charlotte consumes 0 bananas at pareto efficient allocation.
c. Wilbur must be consuming 16 bananas.
(As Charlotte consumes 0, he consumes all 16)
His marginal utility of banana= 1/4
(For Wilbur MUb= 1/√b=1/√16=1/4, MUa=1)
And marginal utility of apples= 1
If apples are numeraire ,price of banana= 1/4
Competitive Equilibrium Wilbur consumes 14 apples and 16 banana and Charlotte consumes 2 apple and 0 banana.
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