a) Draw an Edgeworth Box and properly label the origins and the axes to indicate the possible allocations of these goods between the two individuals. b) John's initial allocation is 20 pizzas and 4 six-packs of coke. The total amount of pizzas in the economy is 30 pizzas and 10 six-packs of coke. Indicate this allocation and label this point on the graph. c) John's marginal rate of substitution between pizza and coke is 1 pack of coke for every four pizzas and Jane's is three packs of cokes for every four pizzas. Draw conventional indifference curves for both individuals that would approximate this situation. d) Can you think of a possible trade that would be acceptable to both individuals? Explain. What would be the range that would be acceptable to both individuals? Le) Indicate on the graph the Pareto Efficient allocation that will result when both marginal rates of substitution are equal to 1 coke for every 2 pizzas. Suppose that at this allocation each has 15 pizzas and 5 six-packs of coke? Is the point socially optimal? Explain. f) Suppose a new allocation where John has 30 pizzas and 10 six-packs of coke and is Pareto Efficient. Demonstrate using a utility possibilities curve and social indifference curves where this would be socially optimal. ************** DO NOT POST AN ANSWER ABOUT "ADA" PLEASE READ QUESTION AND ANSWER ACCORDINGLY Need with with utility possibilities curve a) Draw an Edgeworth Box and properly label the origins and the axes to indicate the possible allocations of these goods between the two individuals. b) John's initial allocation is 20 pizzas and 4 six-packs of coke. The total amount of pizzas in the economy is 30 pizzas and 10 six-packs of coke. Indicate this allocation and label this point on the graph. c) John's marginal rate of substitution between pizza and coke is 1 pack of coke for every four pizzas and Jane's is three packs of cokes for every four pizzas. Draw conventional indifference curves for both individuals that would approximate this situation. d) Can you think of a possible trade that would be acceptable to both individuals? Explain. What would be the range that would be acceptable to both individuals? Le) Indicate on the graph the Pareto Efficient allocation that will result when both marginal rates of substitution are equal to 1 coke for every 2 pizzas. Suppose that at this allocation each has 15 pizzas and 5 six-packs of coke? Is the point socially optimal? Explain. f) Suppose a new allocation where John has 30 pizzas and 10 six-packs of coke and is Pareto Efficient. Demonstrate using a utility possibilities curve and social indifference curves where this would be socially optimal. ************** DO NOT POST AN ANSWER ABOUT "ADA" PLEASE READ QUESTION AND ANSWER ACCORDINGLY Need with with utility possibilities curve