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[13] Two individuals, Seth and Evan, live in an endowment economy. Seth has 20 slushies and 10 jugs of laundry detergent. Evan has 10 of
[13] Two individuals, Seth and Evan, live in an endowment economy. Seth has 20 slushies and 10 jugs of laundry detergent. Evan has 10 of each. a. [2] Draw an Edgeworth box that depicts the endowment. b. [2] Draw bowed indifference curves through the endowment point for Seth and Evan. Explain in the least technical terms possible: c. [3] What is the definition of a Pareto improving allocation? Highlight one in your diagram. d. [3] What is the meaning of a contract curve? Add one to your diagram. e. [3] What is the significance of the core of this exchange economy? Highlight the core in your diagram
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