Exchange in an Edgeworth Box Karen's Food 10F 4F 3F 6C The initial allocation The allocation before trade is A:James after trade is B:James has 7F and 1C Karen has 6F and 2C Karen has 3F and 5C. has 4F and 4C. James's Karen's Clothing Clothing 2C 4C +1C 1C 5C -1F1A 6C 0 6F 7F 10F James's FoodExchange in an Edgeworth Box 10F 0 K 0 J 6C 10F 6C James’s Clothing Karen’s Clothing Karen’s Food James’s Food 2C 1C 5C 4C 4F 3F 6F 7F +1C -1F The allocation after trade is B: James has 6F and 2C & Karen has 4F and 4C. A B The initial allocation before trade is A: James has 7F and 1C & Karen has 3F and 5C