Suppose Aaliyah has 3 cans of soda and 9 sandwiches while Bartosz has 8 cans of soda and 4 sandwiches. With these endowments in an Edgeworth box, Aaliyah's marginal rate of substitution (MRS) of soda cans for sandwiches is 4 and Bartosz's MRS is equal to 2. Explain whether this point is on the contract curve, off the contract curve or there is not enough information to determine whether it's on the contract curve or not?

Suppose Aaliyah has 3 cans of soda and 9 sandwiches while Bartosz has 8 cans of soda and 4 sandwiches. With these endowments in an Edgeworth box, Aaliyah's marginal rate of substitution (MRS) of soda cans for sandwiches is 4 and Bartosz's MRS is equal to 2. Explain whether this point is on the contract curve, off the contract curve or there is not enough information to determine whether it's on the contract curve or not?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 7P

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