Draw a fully labelled Edgeworth box diagram for the island$’$s economy, showing the quantity of vegetables on the horizontal axis and the quantity of fish on the vertical axis. Place Aiden$’$s origin at the bottom left of the diagram. On your diagram:

i$.$Illustrate the preferences of the two consumers $($Aiden and Biden$)$ for vegetables and fish using indifference maps and assuming a diminishing marginal rate of substitution $($MRS$).$ Use at least three indifference curves for each consumer and label each curve with a number.

ii$.$Explain the meaning of:

a$.$the dimensions of the box

b$.$the indifference maps

c$.$the marginal rate of substitution $($MRS$).$ 

iii.show the contract curve and explain its economic significance. Suppose Aiden starts with a high endowment of vegetables and few fish, while Biden begins with most of the fish and little vegetables. Using a copy of the box diagram in Question $1$:

i$.$Show the point of the initial endowment $($mark it with W$)$ and indicate by referring to your numbered indifference curves the utility levels that Aiden and Biden could achieve with this endowment.

ii$.$Show and shade an area that shows all possible combinations of vegetables and fish consumption that would make both Aiden and Biden better off compared to their initial endowment.

iii.Identify the core of this two$-$person economy given the initial endowment. Explain the economic significance of the core.