2. Consider the case of a landlord and tenet. The landlord wants to get the highest price possible for his or her rental property, while the tenet wants to pay the lowest price possible. Suppose that for whatever reason the tenet has few available alternatives and thus agrees to pay the landlord an amount of rent the tenet considers exploitive.

(a) Use an Edgeworth box like we discussed in class to depict this situation. Place all other goods on the vertical axes of the box and housing on the horizontal axes. Hint: if the tenet thinks he or she is being exploited, would equilibrium occur higher up the tenets utility hill or further down it?

While the tenet considers the rent he or she pays for the property to be exorbitant, the tenet has nevertheless agreed to meet the landlords demands. True or False: We can infer that the tenet is better off regardless of their complaints about the price. Briefly explain your answer