Using the edgeworth box diagram answer the following 1 how


Using the Edgeworth box diagram, answer the following:

1. How can one point simultaneously represent the market baskets owned by two different consumers?

2. Why are both consumers' marginal rates of substitution equal at every point on the contract curve in the Edgeworth box?

3. Why is a competitive equilibrium on the contract curve?

4. What does a vertical movement inside the box signify? And a horizontal movement?

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Macroeconomics: Using the edgeworth box diagram answer the following 1 how
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