If only two people are trading their endowments and no production is possible,then the equilibrium they reach will

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Quizplus · Accepted Answer

The equilibrium reached in a situation where only two people are trading their endowments, with no production possible, will be on their contract curve. The contract curve represents all the allocations of goods between the two individuals that are efficient, meaning that no further trades could make one person better off without making the other person worse off. This equilibrium ensures that the marginal rates of substitution between the two goods are equal for both individuals, meaning that both individuals value the trade-off between the goods in the same way, leading to an efficient allocation of resources.

If Only Two People Are Trading Their Endowments and No