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Suppose two people start with an initial endowment and trade until they obtain a Pareto-efficient ...

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Suppose two people start with an initial endowment and trade until they obtain a Pareto-efficient ...

Suppose two people start with an initial endowment and trade until they obtain a Pareto-efficient allocation with the corresponding price line. What happens when more people who have the same tastes and endowments as the original two traders are included in the Edgeworth box analysis?
A) The price line does not change.
B) The price line becomes flatter.
C) The price line becomes steeper.
D) The price line shifts up or down depending upon how many of each type of trader is included in the analysis.

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Microeconomics

Edition: 8^th

Author: Perloff

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More solutions for this book are available here

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traggthuyy@gmai Author

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Smart ... Thanks!

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You make an excellent tutor!

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Good timing, thanks!

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