In Problem 1, Suppose That Morris Has the Utility Function

question 9

Multiple Choice

In Problem 1, suppose that Morris has the utility function U(b, w) = 6b + 6w and Philip has the utility function U(b, w) = bw. If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box, then the contract curve contains

• A) a straight line with slopepassing through the upper right corner of the box.
• B) a curve that gets steeper as you move from left to right.
• C) a straight line running from the upper right corner of the box to the lower left.
• D) a straight line with slopepassing through the lower left corner of the box.
• E) a curve that gets flatter as you move from left to right.

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