Fill in the following table. (Enter your responses using integers.) Individual Initial Trade Final Allocation for Allocation Norman 5F, 5C clothing food 4F. 6C 6F. 4c Gina 5F, 5C After this trade, Norman's MRS will and Gina's MRS will Editing: decrease 3-point curve increase

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 3CQQ
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Norman and Gina consume tood and clothing. In particular, Norman currently consumes 5 units of food and
5 units of clothing and Gina currently consumes 5 units of food and 5 units of clothing. At these levels of
consumption, Norman's MRS of food for clothing is 0.50 and Gina's MRS of food for clothing is 2.00.
Illustrate with an Edgeworth box.
Noman
1.) Using the three-point curved line drawing tool, draw an indifference curve for Norman when consuming
5 units of food and 5 units of clothing. Label this curve UN.
2.) Using the three-point curved line drawing tool, draw an indifference curve for Gina when consuming 5
units of food and 5 units of clothing. Label this curve UG:
UG
5
Carefully follow the instructions above, and only draw the required objects.
Next, fill in the missing information in the following table.
UN
For simplicity, assume the consumers have the option of trading one unit of food (F) for one unit of clothing
(C).
Fill in the following table. (Enter your responses using integers.)
OG
Gina
Individual
Initial
Trade
Final
Food
Allocation
for
Allocation
Norman
5F, 5C
clothing
4 F. 6C
Gina
5F, 5C
food
6F, 4 C
After this trade, Norman's MRS will
and Gina's MRS will
Editing:
decrease
Delete Clear
3-point curved line tool
increase
An object is selected. Delete it, or
Ns or by dragging.
Clothing
Transcribed Image Text:Norman and Gina consume tood and clothing. In particular, Norman currently consumes 5 units of food and 5 units of clothing and Gina currently consumes 5 units of food and 5 units of clothing. At these levels of consumption, Norman's MRS of food for clothing is 0.50 and Gina's MRS of food for clothing is 2.00. Illustrate with an Edgeworth box. Noman 1.) Using the three-point curved line drawing tool, draw an indifference curve for Norman when consuming 5 units of food and 5 units of clothing. Label this curve UN. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Gina when consuming 5 units of food and 5 units of clothing. Label this curve UG: UG 5 Carefully follow the instructions above, and only draw the required objects. Next, fill in the missing information in the following table. UN For simplicity, assume the consumers have the option of trading one unit of food (F) for one unit of clothing (C). Fill in the following table. (Enter your responses using integers.) OG Gina Individual Initial Trade Final Food Allocation for Allocation Norman 5F, 5C clothing 4 F. 6C Gina 5F, 5C food 6F, 4 C After this trade, Norman's MRS will and Gina's MRS will Editing: decrease Delete Clear 3-point curved line tool increase An object is selected. Delete it, or Ns or by dragging. Clothing
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