he seller and buyer can reach a higher indifference curve at point B by trading tickets Other goods Other goods Tickets Tickets Buyer Seller A B Part 1 -Getting Started Copyright ? 2014 McGraw -Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw -Hill Education. 3 - 3 and other goods without either person being worse off . T herefore, the current allocation is inefficient. c. A situation in which the ori ginal allocation is efficient and the trading does not affect efficiency is shown below at point A. 6. a. Social indifference curves are straight lines with slope of –1. As far as society is concerned, the “util” to Augustus is equiva lent to the “util” to Livia. Other goods Other goods Tickets Tickets Buyer Seller A
全文预览
