Bert and Ernie are flatmates. They both eat cream cheese and chocolate spread for breakfast. Bert has an initial endowment consisting of 10 units of cream cheese and 10 units of chocolate spread. Ernie's initial endowment consists of 10 units of cream cheese and 20 units of chocolate spread. Bert regards both products as perfect 1-for-1 substitutes. Ernie regards them as perfect complements, and always mixes 3 units of chocolate spread with 2 units of cream cheese for his perfect croissant filling.

1. Represent these initial endowments in an Edgeworth exchange box.
2. Describe the set of allocations that are Pareto preferred to the initial endowment.
3. Describe the contract curve for that allocation.
4. What price ratio will be required to sustain an allocation on the contract curve?
5. How will your answers to the above questions differ if 5 units of Ernie's chocolate spread endowment are given to Bert?