In an Edgeworth box diagram with two goods and two consumers in an exchange econ

Question

In an Edgeworth box diagram with two goods and two consumers in an exchange economy, which one of the following is not true at every point along the contract curve?

A.It is not possible to make one consumer better off without making the other consumer worse off.

B.The consumers' indifference curves are tangent to each other.

C.The consumers' marginal rates of substitution are equal.

D.The total amount available of each good is allocated to the two consumers.

E.Each consumer prefers every point on the contract curve to any point off the contract curve.

Explanation / Answer

Each consumer prefers every point on the contract curve to any point off the contract curve is not true at every point along the contract curve. Because any person can prefer a point off the curve to one on the curve.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.