The accompanying diagram shows an Edgeworth box economy. The initial endowment is point O. At current relative prices, Augie chooses point X and Bev chooses point Y

-Refer to Edgeworth Box Economy.The initial holdings of an individual in an Edgeworth box is referred to as

Question

The accompanying diagram shows an Edgeworth box economy. The initial endowment is point O. At current relative prices, Augie chooses point X and Bev chooses point Y

-Refer to Edgeworth Box Economy.The initial holdings of an individual in an Edgeworth box is referred to as

Quizplus · Accepted Answer

The initial holdings of an individual in an Edgeworth box are referred to as the endowment point. This point represents the initial allocation of goods or resources between two individuals before any trading takes place.

The Accompanying Diagram Shows an Edgeworth Box Economy