In the two good-two consumer Edgeworth Box diagram drawn below, Good X is measured horizontally, and Good Y is measured vertically. Given the initial endowment of goods at point E and the prevailing market prices, both consumer A and consumer B wish to be at point T. Which of the following statements is true? OB Good Y UB T UA Good X OA there is excess demand for Good X; excess demand for Good Y there is excess demand for Good X; excess supply for Good Y there is excess supply for Good X; excess demand for Good Y none of the above A. В. C. D.

In the two good-two consumer Edgeworth Box diagram drawn below, Good X is measured horizontally, and Good Y is measured vertically. Given the initial endowment of goods at point E and the prevailing market prices, both consumer A and consumer B wish to be at point T. Which of the following statements is true? OB Good Y UB T UA Good X OA there is excess demand for Good X; excess demand for Good Y there is excess demand for Good X; excess supply for Good Y there is excess supply for Good X; excess demand for Good Y none of the above A. В. C. D.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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