Adam and eve, both get utility from the consumption of apples and oranges but have different utility functions. Both have diminishing marginal rates of substitution for the goods.

i) Adam starts with all the apples and Eve starts with all the oranges. What is the condition on marginal utilities that will make both better off if Adam gives Eve some apples and gets some oranges in exchange?

ii) If Adam and Eve have bought their fruit in a competitive market is there a trade that will make both of them better off? Why or why not?

iii) If Adam and Eve have bought their fruit in a competitive market and Adam is really poor and Eve is really rich, is there a trade that can make both of them better off? Why or why not?