If the two goods in an Edgeworth Box are perfect complements for one person -- and if the other person has the typical tastes that satisfy our usual assumptions (without being extreme in any way), any efficient allocation will be such that the first person has equal amounts of good 1 and good 2.

Question

Quizplus · Accepted Answer

If the two goods are perfect complements for one person, then they must be consumed in fixed proportions. Therefore, any efficient allocation will be such that the first person has equal amounts of good 1 and good 2. This is because any deviation from this allocation would make one person worse off without making the other person better off.

If the Two Goods in an Edgeworth Box Are Perfect