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2p curves cross. The diagram shows an Edgeworth box for an exchange economy with two individuals, a and b, and two goods, x and y.
2p curves cross. The diagram shows an Edgeworth box for an exchange economy with two individuals, a and b, and two goods, x and y. An indifference curve is shown for each individual. Suppose the endowment point is where the two indifference What can we say about a change in allocation from point M to point N? U-10 None the above It is a Pareto improvement for the society The new allocation is individually rational for both individuals The new allocation is individually rational only for individual b
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