Edgeworth Box
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How to plot initial endowment points on a edgeworth box graph?
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Solution Summary
The solution explains the concept of Edgeworth box pretty well and also draws out a couple of graphs (in the attachment). The explanation provided in the response is concise and clear, yet easy to understand. This is a complex topic to understand but the response does a superb job of explaining this difficult concept. Overall, an excellent response.
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Obiously, e1A+e1B = 4, e2A+e2B = 6
It's easy to draw an Edgeworth Box like figure1.
From UA=2X1 + X2, we can say that A's indifference curve are parallel lines with a slope of 1/2. (like line A) refer to figure 2
In the same way, from UB = X1 + 2X2, B's indifference curve ...
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