* ll. Problem Set 5_fd43647a4d75f... > Problem Set 5 QUESTION 1 – Multiple choices Bruce AI i) The above figure depicts the Edge worth box for two individuals, A and B. If the endowment is at point a, and trade is possible, which of the following points are possible equilibrium? A) points a, b, c and d B) points a and b C) points b and d D) points a and c E) points c and d (ii) The above figure depicts the Edgeworth box for two individuals, A and B. The contract curve can be found by connecting points A) a and b. B) c and d. C) b and d. D) a and c. iii) The above figure depicts the Edgeworth box for two individuals, A and B. Considering only the labeled points, point c is a possible equilibrium A) only if it is the endowment. B) only if point a is the endowment. C) only if point d is the endowment. D) if either point a or b is the endowment.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Problem Set 5_fd43647a4d75f...
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Problem Set 5
QUESTION 1 – Multiple choices
Bruce
AI
i)
The above figure depicts the Edge worth box for two individuals, A and B. If the
endowment is at point a, and trade is possible, which of the following points are
possible equilibrium?
A) points a, b, c and d
B) points a and b
C) points b and d
D) points a and c
E) points c and d
(ii)
The above figure depicts the Edgeworth box for two individuals, A and B. The
contract curve can be found by connecting points
A) a and b.
B) c and d.
C) b and d.
D) a and c.
iii) The above figure depicts the Edgeworth box for two individuals, A and B. Considering
only the labeled points, point c is a possible equilibrium
A) only if it is the endowment.
B) only if point a is the endowment.
C) only if point d is the endowment.
D) if either point a or b is the endowment.
Transcribed Image Text:* ll. Problem Set 5_fd43647a4d75f... > Problem Set 5 QUESTION 1 – Multiple choices Bruce AI i) The above figure depicts the Edge worth box for two individuals, A and B. If the endowment is at point a, and trade is possible, which of the following points are possible equilibrium? A) points a, b, c and d B) points a and b C) points b and d D) points a and c E) points c and d (ii) The above figure depicts the Edgeworth box for two individuals, A and B. The contract curve can be found by connecting points A) a and b. B) c and d. C) b and d. D) a and c. iii) The above figure depicts the Edgeworth box for two individuals, A and B. Considering only the labeled points, point c is a possible equilibrium A) only if it is the endowment. B) only if point a is the endowment. C) only if point d is the endowment. D) if either point a or b is the endowment.
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