CHAPTER 2 EXERCISE 6Consider an economy with two people, Henry and Catherine, who consume two commodities, bread and water. Suppose that, due to a drought, the authorities’ decided to allocate exactly half the available water to each person. In order to prevent one person from “exploiting” the other, neither person may trade away any water to the other in exchange for more bread. Set up an Edgeworth Box to depict this situation and explain why it is unlikely to be Pareto efficient. Can this framework be used to analyze the Canadian policy of banning exports of water to the United States? [L02].