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Initial allocation of Books and Pizza in a simple economy is: Ali has 6 units of Books and 2 units of Pizza. Ben has 1
Initial allocation of Books and Pizza in a simple economy is: Ali has 6 units of Books and 2 units of Pizza. Ben has 1 unit of Books and 8 units of Pizza. Ali MRS is 5 he is willing to give up five units of books for one unit of pizza. Ben has an MRS of two he is willing to give up two units of books for one unit of pizza.
Q) if they are to trade books and pizza with each other who would be selling/buying what to insure such a trade would be Pareto Superior explain your answer
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