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mud Consider an economy which is in general equilibrium. Ann and Bob are (the only) two consumers in an economy. They both consume both good
mud Consider an economy which is in general equilibrium. Ann and Bob are (the only) two consumers in an economy. They both consume both good x and good y. This implies that Consider the truth of the following two statements: mu A my B (i) The equality is important with regards to efficiency because it implies that there are no Pareto Improving trades of x and y between Ann and Bob. (ii) The equality is important with regards to efficiency because it implies that (for x and y) the prices that producers see reflect the (relative) values that consumers place on the goods. O a. Only statement (ii) is true. O b. Only statement (i) is true. O c. Both statements are true. O d. Both statements are false
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