The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Points a and b
A) are most likely to reflect the final allocations after trading.
B) are least likely to reflect the final allocations after trading.
C) are equally likely to reflect the final allocations after trading than other points on the contract curve.
D) are definitely not the final allocations after trading.
D
You might also like to view...
Non-credible threats that are made in a Nash equilibrium (that is not subgame perfect) of a sequential game cannot be made in the first stage by the player who begins the game.
Answer the following statement true (T) or false (F)
Which of the following will occur if a legal price floor is placed on a good below its free market equilibrium?
A. Surpluses will develop B. Shortages will develop C. Underground markets will develop D. The equilibrium price will ration the good E. The quantity sold will increase