Suppose Humphrey and Matilda live together. Humphrey currently smokes 20 packs of cigarettes per month; Matilda hates the smoke. They currently have no agreement restricting smoking. Their only joint expense is monthly rent, which they split 50:50. Draw an Edgeworth box with two goods-smoke and rental payments. Make up some reasonable indifference curves. Show the initial endowment. What Pareto efficient points might result from bargaining to restrict smoke? How does the graph show what price per pack Matilda might pay to buy down Humphrey's smoking (i.e., show the relative prices on your figure)? How would your answers change if the status quo is that the two have an agreement for no smoking and Humphrey would like to smoke as much as 20 packs per month? He must seek Matilda's permission to do so.