Jane has 9 liters of soft drinks and 12 sandwiches. Bob, on the other hand, has 11 liters of soft drinks and 8 sandwiches. With these endowments, Jane's marginal rate of substitution (MRS) of soft...

Extracted text: Jane has 9 liters of soft drinks and 12 sandwiches. Bob, on the other hand, has 11 liters of soft drinks and 8 sandwiches. With these endowments, Jane's marginal rate of substitution (MRS) of soft drinks for sandwiches is 4 and Bob's MRS is equal to 3. Draw an Edgeworth box diagram to show whether this allocation of resources is efficient. If it is explain why. If it is not, what changes will make both parties better off? 1.) Using the three-point curved line drawing tool, draw an indifference curve for Jane when consuming 9 liters of soft drinks and 12 sandwiches. Label this curve U, Bob 11 2.) Using the three-point curved line drawing tool, draw an indifference curve for Bob when consuming 11 liters of soft drinks and 8 sandwiches. Label this curve Up. Carefully follow the instructions above, and only draw the required objects. Jane Soft drinks Sandwiches