Final answer:
A spatial model graph will represent territory on the X-axis and access to water on the Y-axis. Country A and Country B's ideal points will be on different axes according to their priorities, and the negotiated solution should be at a point near where their lines of indifference intersect.
Step-by-step explanation:
To graph this scenario using a spatial model, we consider two axes: one representing territory and the other representing access to water. Let's assume the horizontal axis (X-axis) represents territory and the vertical axis (Y-axis) represents access to water. Country A's ideal point lies higher on the Y-axis because it prioritizes water access, and similarly, Country B's ideal point is further along the X-axis due to its emphasis on territory.
The curve of compromise or 'set of possible agreements' would be an oblique line that intersects the ideal points of both countries because the negotiations would involve trade-offs between the two issues. A negotiated solution would be expected to fall where the utilities derived from territory and water access are balanced for both parties, likely close to where their lines of indifference meet.
Components of the graph include:
- Axis representing territory
- Axis representing access to water
- Country A's and Country B's ideal points
- Curve of possible agreements
- Point of negotiated solution