The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Al has no ability to bargain, the final allocation will be at point

Two countries with differing comparative advantages may engage in trade because

A. They will be able to consume more goods in total due to specialization and trade. B. They are required to because they are part of the World Trade Organization. C. They will achieve an absolute advantage with one another. D. They will be able to produce and consume goods on their production possibilities curves.

If quantity demanded changes infinitely when the price changes, the demand:

A. is unit elastic. B. is slightly elastic. C. is inelastic. D. is perfectly elastic.