Alex has 6 M&Ms and no Starburst; Fred has 8 Starburst and 2 M&Ms. Alex's preferences are described by the utility function U(M, S) = min (M, S), while Fred's preferences are described by the utility function U(M, S) = M, S.
a. Draw a clearly labeled Edge worth box showing Alex and Fred's possible consumption bundles. Be sure to label all the axes as well as the initial bundle. Also, show and shade in the set of trades that makes at least one of them better off, and does not make either worse off, compared with their original bundles. Be sure to indicate clearly the boundaries of this set.
b. Of all the trades that make neither of them worse off, which is best for Fred?
c. Of all the trades that make neither of them worse off, which is best for Alex?