1. Jane and Joseph really like gin and tonics, but Jane likes hers a little stronger than Joseph. Jane's utility function over gin and tonic
1. Jane and Joseph really like gin and tonics, but Jane likes hers a little stronger than Joseph. Jane's utility function over gin and tonic is U (g, () = min(g, t) and Joseph's is U(g, t) = min(2g,t). Joseph and Jane show up at a party and Joseph brought the tonic t = 1000 mL, and Jane brought the gin g = 750 mL. a. Draw the Edgeworth box for Jane and Joseph and gin and tonic. b. Draw a line representing all the points for which g = t for Jane, and all the points for which 2g = t for Joseph. c. At which point would you recommend Jane and Joseph divide the gin and tonic to maximize societal welfare? Label it on the Edgeworth box. d. Solve for the amount of gin and tonic for both Jane and Joseph labeled in part c
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