Will likes apples and hates bananas.Wanda likes both apples and bananas.Both of them have convex preferences.Will's initial endowment is 10 apples and 5 bananas.Wanda's initial endowment is 5 bananas and 10 apples.
a.Draw an Edgeworth box with apples on the horizontal axis.Label the initial endowment point W.
b.Show two indifference curves for each person.
c.Show where on your diagram the Pareto optimal allocations are.

Question

Quizplus · Accepted Answer

The Answer of Will likes apples and hates bananas.Wanda likes both apples and bananas.Both of them have convex preferences.Will's initial endowment is 10 apples and 5 bananas.Wanda's initial endowment is 5 bananas and 10 apples.
a.Draw an Edgeworth box with apples on the horizontal axis.Label the initial endowment point W.
b.Show two indifference curves for each person.
c.Show where on your diagram the Pareto optimal allocations are.

Will Likes Apples and Hates Bananas