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Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 2

9708Efficiency and market failure

The initial allocation of goods between three consumers is shown. | | consumer 1 | consumer 2 | consumer 3 | total | |---|---|---|---|---| | | 2 | 5 | 10 | 17 | Which row shows a Pareto improvement in the allocation of goods between consumers? | | consumer 1 | consumer 2 | consumer 3 | total | |---|---|---|---|---| | A | 2 | 5 | 11 | 18 | | B | 4 | 5 | 9 | 18 | | C | 4 | 4 | 10 | 18 | | D | 6 | 6 | 6 | 18 |

  1. A2, 5, 11, 18
  2. B4, 5, 9, 18
  3. C4, 4, 10, 18
  4. D6, 6, 6, 18

As printed in the paper

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Correct answer: A. 2, 5, 11, 18

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