In a competitive equilibrium, no matter how different their preferences may be, no two people with the same income will envy each other's consumption bundles.

Question

Quizplus · Accepted Answer

In a competitive equilibrium, each person has access to the same set of prices and income, allowing them to choose their preferred consumption bundle. Therefore, even if their preferences differ, they will not envy each other's bundle because they have made the best possible choice given their income and prices.

In a Competitive Equilibrium, No Matter How Different Their Preferences