A graphical device that permits us to analyze the process of trade between two parties is called a(n)
A) Edgeworth box
B) Pareto box
C) equilibrium box

Question

Quizplus · Accepted Answer

The Edgeworth box is a graphical device used to analyze the gains from trade between two parties. It shows the possible allocations of goods that can result from trade as well as the distribution of gains between the two parties. The Pareto box and equilibrium box are not commonly used graphical devices in trade analysis.

A Graphical Device That Permits Us to Analyze the Process