In the Edgeworth Box Shown Below

question 9

Multiple Choice

In the Edgeworth box shown below,

• A)there is more food demanded than is available.
• B)there is more clothing demanded than is available.
• C)the relative prices shown will bring equilibrium without changing.
• D)there is less food demanded than is available.

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Definitions:

Insight

The ability to understand the inner nature of things or to gain an intuitive understanding of complex situations or problems.

Algorithm

A set of rules or a step-by-step process designed to perform a specific task or solve a particular problem.

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.

Tools

Devices or implements used to carry out a function or perform a task, often making jobs easier or possible.