In an Edgeworth box simultaneously representing two consumers possible market baskets of two goods, when two indifference curves are tangent,,

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    the market baskets represented by that tangency will bring the highest level of satisfaction possible to both consumers.
     each consumers market basket has an equal amount of the two goods..
     trade cannot take place and make one person better off without making another worse off.
     the two consumers are consuming the maximum quantity of the two goods possible.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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trade cannot take place and make one person better off without making another worse off.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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