Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream)are invited to a weekend long event (during which they can easily consume 8 cups of coffee).Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee.The post trading result (one in which any trade that makes both parties better off than their initial allocation)will guarantee each person

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Snob A has 8 units of cream, which is enough for 8 cups of coffee. Snob B has 80 units of coffee, which is enough for 80 cups of coffee. If Snob A gives Snob B 1 unit of cream, then Snob B will have enough cream for 10 cups of coffee. Snob A will still have 7 units of cream, which is enough for 7 cups of coffee. Therefore, both snobs will have enough cream and coffee to make at least 1 cup of properly made coffee.

Suppose Two Coffee Snobs Who Must Have Their Coffee and Cream