A Competitive Equilibrium Is Pareto Optimal If There Is No

question 9

Multiple Choice

A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that

• A) anyone can be made better off.
• B) no one can be made worse off.
• C) someone can be made better off without making someone else worse off.
• D) someone can be made better off without making everyone else worse off.

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Definitions:

Single-Price

A pricing strategy where a product or service is sold at the same price to all customers in all markets.

Buyer Demand

The desire and willingness of consumers to purchase a particular good or service at a given price.

Buyer Income

The financial resources available to a consumer, which influence the person's ability to make purchases within the market.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.