11. Consider the Edgeworth box diagram below, which illustrates the amount of peaches and cream in the refrigerator of Billy Joe and Bobby Sue.

a. How many peaches do Billy Joe and Bobby Sue have in their fridge?

b. How much cream do Billy Joe and Bobby Sue have in their fridge?

c. Suppose that Billy Joe pulls 5 peaches and 1 pint of cream out of the fridge, and says, “You can have the rest” to Bobby Sue. Illustrate this allocation of peaches and cream by placing a point in the Edgeworth box. Label the point “A.”

d. Bobby Sue pulls the remaining peaches and cream out of the refrigerator, and comments, “Hey — I’m a bit long on cream and short on peaches here. Give me a couple of your peaches and take one of my creams.” Represent this reallocation of peaches and cream by placing a second point in the Edgeworth box. Label the point “B.”

e. Billy Joe happens to find a couple of extra peaches behind last night’s gnocchi leftovers, and proudly proclaims, “Finders keepers!”
Represent the effects of Billy Joe’s discovery by altering your Edgeworth box. Assume that Bobby Sue acknowledges and respects the “finders, keepers” rule.

Transcribed Image Text:

Billy Joe's cream - 2 3 0 Bobby Sue's peaches 6 5 4 3 2 1 4 4 2 3 4 5 6 Billy Joe's peaches 3 Bobby Sue's cream 2