Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy.
Figure 6-2
-In Figure 6-2,a movement from D to B will:
A)harm Tim and benefit Kathy.
B)harm both Tim and Kathy.
C)benefit Tim and harm Kathy.
D)benefit both Tim and Kathy.

Question

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy.
Figure 6-2 
-In Figure 6-2,a movement from D to B will:
A)harm Tim and benefit Kathy. 
B)harm both Tim and Kathy. 
C)benefit Tim and harm Kathy. 
D)benefit both Tim and Kathy.

Quizplus · Accepted Answer

Moving from D to B represents an increase in the amount of bread and a decrease in the amount of candy for both Tom and Kathy. However, this movement will benefit Tim, who prefers bread to candy, and harm Kathy, who prefers candy to bread. Therefore, choice C is the correct answer as it reflects both the benefit to Tim and the harm to Kathy.

Figure 6-2 Shows an Edgeworth Box with the Preferences of Kathy