Use the follwoing figure to answer the questions : Figure 6-1: shows the distribution of steak and wine between Monica and Hank.

-A movement from A to J in Figure 6-1 would:
A)make both Hank and Monica better off.
B)benefit Monica but harm Hank.
C)benefit Monica and leave Hank no worse off.
D)benefit Hank and leave Monica no worse off.

Question

Use the follwoing figure to answer the questions : Figure 6-1: shows the distribution of steak and wine between Monica and Hank.

-A movement from A to J in Figure 6-1 would:
A)make both Hank and Monica better off. 
B)benefit Monica but harm Hank. 
C)benefit Monica and leave Hank no worse off. 
D)benefit Hank and leave Monica no worse off.

Quizplus · Accepted Answer

A movement from A to J would mean that Monica receives more steak and Hank receives more wine, which would benefit Monica but leave Hank no worse off. This is because both individuals are already at their highest possible utility given their endowments, and any movement in the direction of their preferred goods would make them better off.

Use the Follwoing Figure to Answer the Questions : Figure