Norman and Gina consume tood and clothing. In particular, Norman currently consumes 5 units of food and5 units of clothing and Gina currently consumes 5 units of food and 5 units of clothing. At these levels ofconsumption, 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.Noman1.) Using the three-point curved line drawing tool, draw an indifference curve for Norman when consuming5 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 5units of food and 5 units of clothing. Label this curve UG:UG5Carefully follow the instructions above, and only draw the required objects.Next, fill in the missing information in the following table.UNFor 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.)OGGinaIndividualInitialTradeFinalFoodAllocationforAllocationNorman5F, 5Cclothing4 F. 6CGina5F, 5Cfood6F, 4 CAfter this trade, Norman's MRS willand Gina's MRS willEditing:decreaseDelete Clear3-point curved line toolincreaseAn object is selected. Delete it, orNs or by dragging.Clothing

Note: Since most of the answers in the question are already solved, we are solving the remaining…

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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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