Set up an edgeworth box to depict situation


Consider an economy with two persons, Adam and Barbara, who consume two commodities, bread and water. Suppose that, due to a drought, the authorities decide to allocate exactly half the available water to each person. In order to prevent one person from "exploiting" the other, neither person may trade away any water to the other in exchange for more bread. Set up an Edgeworth Box to depict this situation and explain why the situation is unlikely to be Pareto efficient.

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Microeconomics: Set up an edgeworth box to depict situation
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