Marilyn and Chen Live in an Isolated Valley and Trade

question 72

Multiple Choice

Marilyn and Chen live in an isolated valley and trade with no one but each other.They consume only bananas and tomatoes.Marilyn has an initial endowment of 4 bananas and 11 tomatoes.Chen has an initial endowment of 20 bananas and 27 tomatoes.For Marilyn, the two goods are perfect substitutes, one for one.For Chen, they are perfect complements, one for one.At all Pareto efficient allocations,

• A)Marilyn must consume at least 15 tomatoes.
• B)the slopes of the two traders' indifference curves are the same.
• C)Marilyn must consume at least 14 tomatoes.
• D)Chen must consume 22.50 bananas.
• E)Chen must consume all of the bananas.

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