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Open Word and answer the following questions. Save the document and print it when you are done.
1. Suppose an Edgeworth Box was very tall and very skinny. What would that tell you?
2. Use Word's Drawing Tools to draw an Edgeworth Box that is the same as the EdgeworthBox sheet except B's utility function is U = min{x1, x2}. Draw three representative indifference curves for B.
3. Click the Reset button in the EdgeworthBox sheet and set cB in cell M21 to 0.1. Click the Take a Picture button and paste the graph in your Word document.
4. Explain B's buy/sell decision for each good.
5. How does B's buy/sell decision make sense given that B has so little of x1 and so much of x2?
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