Barter

The Edgeworth Box is a graphical description of what is called an Exchange Economy. In the simplest setup, there are two goods and two consumers. Each has an initial allocation. They can trade with the other. The key economic idea is that people trade to improve their lot, which means trade must make each consumer better off. The video examines the implications of this.

This is the audio only in case the student prefers to play with the spreadsheet while listening.