2(b)There are three people and two goods in an economy. The utility functions and the initial bundles are given below: U; = X11X 12 Uz = 2x 21+ X 22 U3 = X 31 X 3z+X 32 W; = (0,8) W;F (2,2) Wy= (8,0)...

Extracted text: 2(b)There are three people and two goods in an economy. The utility functions and the initial bundles are given below: U; = X11X 12 Uz = 2x 21+ X 22 U3 = X 31 X 3z+X 32 W; = (0,8) W;F (2,2) Wy= (8,0) Suppose it is suggested that the three traders move to the allocation x given by X;= (1,2), x;= (8, 4), X3= (1,4) a. Calculate the MRS for the three at the allocation x. b. Show that x makes no one worse off than the original allocation. C. Show that x is not in the core.