Consider a pure exchange economy with two mysterious goods (good 1 and good 2) and two even more mysterious consumers (Consumer A and Consumer B) Consumer A owns 8 units of good 1 and 1 unit of good 2, and her preferences are represented by the following utility function U A (x 1 x 2 ) x 1 x 2 , where x 1 represents the consumer's consumption of good 1 and x 2 represents the consumer's consumption of good 2 Consumer B owns 2 units of good 1 and 4 units of good 2, and her preferences are represented by the following utility function U B (x 1 x 2 ) x 1 x 2 , where x 1 represents the consumer's consumption of good 1 and x 2 represents the consumer's consumption of good 2 Assume that the two consumers are allowed and able to negotiate with each other at no cost Mark the location of all those allocations in the Edgeworth box that could constitute the final outcome of the negotiation between the two consumers (Hint Negotiation is assumed to be voluntary, therefore agreements should be mutually beneficial to the negotiating parties )

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Consider a pure exchange economy with two mysterious goods (good 1 and good 2) and two even more mysterious consumers (Consumer A and Consumer B).

Consider a pure exchange economy with two mysterious goods (good 1 and good 2) and two even more mysterious consumers (Consumer A and Consumer B). Consumer A owns 8 units of good 1 and 1 unit of good 2, and her preferences are represented by the following utility function: U_A(x₁; x₂) = x₁x₂, where x₁ represents the consumer's consumption of good 1 and x₂ represents the consumer's consumption of good 2. Consumer B owns 2 units of good 1 and 4 units of good 2, and her preferences are represented by the following utility function: U_B(x₁; x₂) = x₁ + x₂, where x₁ represents the consumer's consumption of good 1 and x₂ represents the consumer's consumption of good 2.

Assume that the two consumers are allowed and able to negotiate with each other at no cost. Mark the location of all those allocations in the Edgeworth box that could constitute the final outcome of the negotiation between the two consumers. (Hint: Negotiation is assumed to be voluntary, therefore agreements should be mutually beneficial to the negotiating parties.)