One answer only

Two consumers with well-behaved preferences have an initial endowment of two goods (0'4 = (8, 4) and COB = (6, 6). Which of the following is true? 0 a. A shift in prices can clear both markets 0 b. A reshuffling of the endowment is necessary to achieve an allocation outside the core 0 c. If their desired allocations for Good 1 sum up to 16, there is excess supply in the market 0 d. If the desired allocations for Good 1 sum up to 16, then the desired allocations for Good 2 sum up to 12