... feasible. After these endowments the consumers may either consume or trade. Lets say that Alex has an initial endowment of 10units of good 1 (?1A) and 20units of good 2 (?2A). If the total amount of good 1 in the economy is 100units and of good 2 is 50units then Ben must have an initial endowment of 90units of good 1 (?1B) and 30 of good 2 (?2B). It is very useful to plot these together on the same graph. This is done using an Edgeworth Box, in which Alex's axes for plotting good1 against good 2 are kept fixed, and Ben's are flipped trough 180? as below. The initial endowments for Alex and Ben are also represented here as W. Note that every point that lies within the box corresponds to an allocation that precisely exhausts the total amounts of the 2 goods available in the economy. What we are ...

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