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Economics (AS & A Level) · May / June 2023 · Paper 33 · 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?

  1. Aconsumer 1: 2, consumer 2: 5, consumer 3: 11, total: 18
  2. Bconsumer 1: 4, consumer 2: 5, consumer 3: 9, total: 18
  3. Cconsumer 1: 4, consumer 2: 4, consumer 3: 10, total: 18
  4. Dconsumer 1: 6, consumer 2: 6, consumer 3: 6, total: 18

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Correct answer: A. consumer 1: 2, consumer 2: 5, consumer 3: 11, total: 18

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