I know how to do 1a and 2a, but I felt confused on how to draw the graph on 1b,

Question

I know how to do 1a and 2a, but I felt confused on how to draw the graph on 1b, and how to callcuate or define on 2b and 2c

In both questions, use graphs in addition to equations and/or words to explain your answer. 1. The streets in the city of Anacronia are hundreds, some even thousands, of years old. Some of the buildings are also very old thus the city center has been determined to have some cultural value. Studies suggest that having more than 1000 visitors per day would damage it. Currently, 1500 people visit every day for free. The municipality has decided to restrict the number of visitors to 1000. It is not very difficult to do, because the city center only has one entrance. Name at least 2 mechanisms that would restrict the number of visitors to 1000. Compare them in terms of total welfare (deadweight loss) and also how such welfare is split between the parties involved. Assume two individuals: Alex and Sam. Alex has 30 cans of soda and 90 bags of potato chips, and Sam has 70 cans of soda and 60 bags of potato chips. a. Draw the Edgeworth Box for this situation and indicate the endowment point. b. Assume the current relative prices is two bags of potato chips for one can of soda. Assume that both Sam and Alex have convex and nice indifference curves. Show how both of them could potentially benefit from trade. c. If the relative prices change to one can of soda for one bag of potato chips, can you determine who will benefit? If so, why, and if not, why nor?

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