1. Construct an Edgeworth box diagram to illustrate the following situation (a problem lifted essentially wholesale from Besanko and Brauetigam's Microeconomics book):

Fred is endowed with 0 units of good x and 100 units of good y, while Ginger is endowed with 100 unit of good x and 0 units of good y.Both Fred and Ginger derive utility from consumption of x and y according to u(x,y) = xy.Show the endowment point in the Edgeworth box, and indicate the endowment level of utility for both Fred and Ginger, including the full indifference curve that passes through the endowment point for each of them.Derive the contract curve (the set of all mutually beneficial allocations that are Pareto efficient). Finally, indicate what relative price ratio between good x and good y would allow Fred and Ginger to trade to an efficient equilibrium allocation, and show what that equilibrium would be.