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Given an Edgeworth Exchange Box Showing Homer's and Sandy's Endowments

Question 1

Multiple Choice

Given an Edgeworth exchange box showing Homer's and Sandy's endowments of donuts and coffee:


A) for Homer to have more coffee Sandy must have less donuts.
B) if Sandy is on the contract curve Homer must be off the contract curve.
C) Homer and Sandy will be equally well off at any point on the contract curve.
D) for Sandy to have more coffee Homer must have less coffee.

Correct Answer:

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