In a two-agent and two-good economy, a competitive market equilibrium
In a two-agent and two-good economy, a competitive market equilibrium occurs when
A) the agents’ indifference curves are tangent to the price line.
B) the agents’ marginal rate of substitution are zero.
C) the excess supply exceeds the excess demand.
D) the agents’ indifference curves intersect the price line.
ANSWER
A
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