Suppose That Morris Has the Utility Function U(b, W)= 4b

question 25

Multiple Choice

suppose that Morris has the utility function U(b, w) = 4b + 4w 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 running from the upper right corner of the box to the lower left.
• B)a curve that gets steeper as you move from left to right.
• C)a straight line with slope 1/1 passing through the lower left corner of the box.
• D)a straight line with slope 1/1 passing through the upper right corner of the box.
• E)a curve that gets flatter as you move from left to right.

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Definitions:

Flowstone

Any deposit of calcium carbonate or other mineral formed by flowing water on the walls or floor of a cave.

Cone of Depression

A reduction in the water table around a well after water has been pumped out, creating a conical shape.

Overpumping

The extraction of groundwater at a rate faster than it can be replenished, leading to a depletion of water resources.

Polluted Well

A well where water is contaminated with harmful chemicals, biological agents, or other pollutants, making it unsafe for consumption.