Pure exchange economy Each point in the box in Figure 3. 1 represents an allocation between adam and eve Each point in the box fully exhausts the resources on the island. Adam consumes what Eve doesn't Adam's consumption of apples and figs increases as we move toward the northeast in the box Eve's consumption of apples and figs increases as we move toward the southwest in the box At point v in the figure, Adam's allocation of apples is OX, and of figs is Ou. Eve consumes Ov of apples, and Ow of gs.5 Pure exchange economy • Each point in the box in Figure 3.1 represents an allocation between Adam and Eve. – Each point in the box fully exhausts the resources on the island. Adam consumes what Eve doesn’t. – Adam’s consumption of apples and figs increases as we move toward the northeast in the box. – Eve’s consumption of apples and figs increases as we move toward the southwest in the box. • At point v in the figure, Adam’s allocation of apples is Ox, and of figs is Ou. Eve consumes O’v of apples, and O’w of figs