Problem
Consumer 1 obtains no pleasure from good 1, and consumer 2 obtains no pleasure from good 2. At the initial endowment point both consumers have endowments of both goods.
a. Draw the preferences of the consumers in an Edge worth box.
b. By determining the trades that improve both consumers' utilities, find the equilibrium of the economy. c. Display the equilibrium budget constraint.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.