An Edgeworth Box diagram:
A)can be used to plot different allocation of goods.
B)cannot be drawn for three individuals, only two.
C)cannot be drawn for firms, only consumers.
D)illustrates non- competitive equilibria.

Question

Quizplus · Accepted Answer

An Edgeworth Box diagram can be used to plot different allocation of goods between two individuals. It shows the possible combinations of goods that both individuals can consume when they exchange goods with each other.

An Edgeworth Box Diagram