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2. Suppose Aiden starts with a high endowment of vegetables and few fish, while Biden begins with most of the fish and little vegetables. Using
2. Suppose Aiden starts with a high endowment of vegetables and few fish, while Biden begins with most of the fish and little vegetables. Using a copy of the box diagram in Question 1:Show the point of the initial endowment (mark it with W) and indicate by referring to your numbered indifference curves the utility levels that Aiden and Biden could achieve with this endowment. (4 marks) ii.Show and shade an area that shows all possible combinations of vegetables and fish consumption that would make both Aiden and Biden better off compared to their initial endowment. (2 marks) iii.Identify the core of this two-person economy given the initial endowment. Explain the economic significance of the core. (4 marks)
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