Consider a society consisting of just a baker and a barista. The baker has 30 loaves of bread but no coffee. The barista has 60 units of coffee but no bread. Suppose each has the utility functionU=F1/3C2/3. If the price of coffee is always $1, and the price of bread is currently $1, then we can conclude

a.

none of these answers is correct.

b.

the price of bread will drop towards a competitive equilibrium.

c.

the price of bread will increase towards a competitive equilibrium.

d.

the market is at a competitive equilibrium.