Use the follwoing figure to answer the questions : Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy.
-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

Use the follwoing figure to answer the questions : Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. 
-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

A movement from D to B represents a shift in the production possibility frontier towards candy, which will benefit Tim who has a preference for candy over bread. However, this shift will hurt Kathy who has a preference for bread over candy. Therefore, the correct answer is C, which states that the movement will benefit Tim and harm Kathy.

It is not possible to determine the best choice based on this information alone as we do not know what the objective or constraint is. The Edgeworth box only shows the preferences of the two individuals and the production possibilities given their initial endowments. It does not provide information on which outcome is optimal or feasible.

Use the Follwoing Figure to Answer the Questions : Figure