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Suppose Two Coffee Snobs Who Must Have Their Coffee and Cream

Question 8

Multiple Choice

Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee) .Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee.The contract curve in the Edgeworth box would be


A) a right angle connecting the lower left corner with the upper right corner.
B) a curve (not a line) connecting the lower left corner with the upper right corner.
C) a line connecting the lower left corner with the upper right corner.
D) a right angle connecting the upper left corner with the lower right corner.

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