Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of food and 19 units of clothing and Kelly currently consumes 17 units of food and 21 units of clothing. At these levels of consumption, Michael's MRS of food for clothing is 0.40 and Kelly's MRS of food for clothing is 2.50. Illustrate with an Edgeworth box. 1.) Using the three-point curved line drawing tool, draw an indifference curve for Michael when consuming 23 units of food and 19 units of clothing. Label this curve UM- 2.) Using the three-point curved line drawing tool, draw an indifference curve for Kelly when consuming 17 units of food and 21 units of clothing. Label this curve UK. Carefully follow the instructions above, and only draw the required objects. Next, fill in the missing information in the following table. 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.) Individual Michael Kelly After this trade, Michael's MRS will Initial Allocation 23F, 19C 17F, 21C Trade for and Kelly's MRS will Final Allocation F, C F.C Clothing OK Kelly 17 Food Michael Ом 19 GO a

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of food
and 19 units of clothing and Kelly currently consumes 17 units of food and 21 units of clothing. At these
levels of consumption, Michael's MRS of food for clothing is 0.40 and Kelly's MRS of food for clothing is
2.50. Illustrate with an Edgeworth box.
1.) Using the three-point curved line drawing tool, draw an indifference curve for Michael when consuming
23 units of food and 19 units of clothing. Label this curve UM.
2.) Using the three-point curved line drawing tool, draw an indifference curve for Kelly when consuming 17
units of food and 21 units of clothing. Label this curve Uk.
Carefully follow the instructions above, and only draw the required objects.
Next, fill in the missing information in the following table.
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.)
Individual
Michael
Kelly
After this trade, Michael's MRS will
Of the
Initial
Allocation
23F, 19C
17F, 21C
Trade
for
increase
decrease
▼
and Kelly's MRS will
Final
Allocation
F₁
F.C
Selected:
none
Clothing
21
OK
Kelly
Delete Clear ?
23
17
Food
Michael
19
Q
Transcribed Image Text:Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of food and 19 units of clothing and Kelly currently consumes 17 units of food and 21 units of clothing. At these levels of consumption, Michael's MRS of food for clothing is 0.40 and Kelly's MRS of food for clothing is 2.50. Illustrate with an Edgeworth box. 1.) Using the three-point curved line drawing tool, draw an indifference curve for Michael when consuming 23 units of food and 19 units of clothing. Label this curve UM. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Kelly when consuming 17 units of food and 21 units of clothing. Label this curve Uk. Carefully follow the instructions above, and only draw the required objects. Next, fill in the missing information in the following table. 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.) Individual Michael Kelly After this trade, Michael's MRS will Of the Initial Allocation 23F, 19C 17F, 21C Trade for increase decrease ▼ and Kelly's MRS will Final Allocation F₁ F.C Selected: none Clothing 21 OK Kelly Delete Clear ? 23 17 Food Michael 19 Q
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