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5: Suppose the following world: There are two members of society: Erica and Kelly. There are two goods in the world: Eclairs (E) and Kit
5: Suppose the following world: There are two members of society: Erica and Kelly. There are two goods in the world: Eclairs (E) and Kit Kats (K). There are 100 Eclairs and 100 Kit Kats. Erica's preferences over these goods can be represented by UE(E, K) = E and Kelly's preferences over these goods can be represented by UK(E, K) = K. Using this information, answer the following questions. Part (a) On separate graphs, illustrate Erica's and Kelly's preference map over Eclairs and Kit Kats putting Eclairs on the y-axis and Kit Kats on the x-axis. [By preference map, I mean illustrate several indifference curves for each person.] Note: When referencing these graphs below, I'll refer to Erica's preference map as A1 and Kelly's preference map as A2. Part (b) On a different graph, illustrate the set of utility possibilities for Erica and Kelly when all Eclairs and Kit Kats are distributed, putting Erica's utility on the y-axis and Kelly's utility on the x-axis. Note: When referencing this graph below, I'll refer to it as B. Part (c) Suppose Erica and Kelly are given 50 Eclairs and 50 Kit Kats each. On graph B, illustrate the utility pairs associated
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