Plotting Initial Endowment Points
How to plot initial endowment points on a edgeworth box graph?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/economic-analysis-of-law/plotting-initial-endowment-points-22t
...are parallel lines with a slope of 2. (like line B)
When line A and B pass through the Pareto efficient point C the initial endowment, we know that the trade process can go down along these two lines. (by definition of Pareto Efficient)
Then we can check the ...