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Jane has 10 liters of soft drinks and 8 sandwiches. Bob, on the other hand, has 10 liters of soft drinks and 12 sandwiches. With
Jane has 10 liters of soft drinks and 8 sandwiches. Bob, on the other hand, has 10 liters of soft drinks and 12 sandwiches. With these endowments, Jane's marginal rate of substitution (M R5) of soft drinks for sandwiches is 4 and Bob's MRS is equal to 2. Draw an Edgewcrth box diagram to show whether this allocation of resources is efcient. If it is explain why. If it is not, what changes will make both parties better off? 1 .) Using the three-point curved line drawing tool, draw an indifference curve for Jane when consuming 10 liters of soft drinks and 8 sandwiches. Label this curve U J. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Bob when consuming 10 liters of soft drinks and 12 sandwiches. Label this curve \"3- Carefully follow the instmclions above, and only draw the required objects. 10 OB w i':' I .2 . 3 . u . C g .12 OJ 10 Jane I Softdrinks (5.67,12.8) omega
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